Yen May Weaken for 3 Months Before Rebound, Credit Suisse Says
The yen will weaken against the dollar in the next three months as Japanese government officials increase economic stimulus, according to Credit Suisse Group AG. (CSGN)
Japan’s currency may depreciate to 91 per dollar, compared with a previous forecast of 84, before strengthening to 80 within 12 months, the Zurich-based bank said in a report.
The yen touched the weakest versus the U.S. dollar since June 2010 yesterday on bets Japanese Prime Minister Shinzo Abe will select a central-bank chief who will expand monetary stimulus. The currency rose the most since May versus the dollar today as Japanese Economy Minister Akira Amari said an excessively weak currency may hurt imports and households, damping bets policy makers will try to push it down further.
“Over time, it is increasingly difficult for the Bank of Japan to deliver on market expectations for an increase in inflation,” Daniel Katzive, director of global foreign-exchange at Credit Suisse in New York, said in a telephone interview. “We think they will stop short of the real game-changing step of buying foreign assets.”
The yen rose 1 percent to 88.60 per dollar at 1:26 p.m. New York time. Japan’s currency is down about 12 percent versus the greenback since the end of September.
To contact the reporter on this story: Taylor Tepper in New York at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org