Yen May Break Range, Weaken Past 100 Per Dollar, Matwejev SaysJoseph Ciolli
The yen will weaken past 100 per dollar by the end of 2013 as recent strength provides a selling opportunity, according to Greg Matwejev of Newedge Group SA.
Japan’s currency is poised to decline versus the greenback after trading in a multi-month holding pattern, said Matwejev, the Hong Kong-based director of foreign-exchange hedge fund sales at Newedge. The yen has been trading in a range from 96.50 to 99.50, and has moved closer to the stronger boundary in recent days, carving out more room for a move weaker, he said.
“It’s probably a good place to start accumulating dollar-yen longs again,” Matwejev said in an interview on Bloomberg Television’s “On the Move” with Rishaad Salamat. “I’m pretty confident we’ll finish the year above 100.” A long position is a bet an asset, in this case the dollar, will rise.
Japan’s currency was little changed at 97.35 per dollar at 1:28 p.m. in New York after climbing to 97.18. The yen has gained versus the greenback five of the past six days, adding 0.4 percent over the past week. It last touched 100 on Sept. 11.
The median forecast of more than 60 economists surveyed by Bloomberg calls for a decline in the yen to 101 by year-end and 110 by the end of 2014.
The yen has declined 11 percent this year, making it the worst performer out of 10 developed-nation currencies, according to Bloomberg Correlation-Weighted Indexes. The dollar rose 1.5 percent.