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Moody’s Analytics Says Yen May Rise as Another Lost Decade Looms

  • GDP growth expected to be 0.6% in 2016, 1% for rest of decade
  • ‘Abenomics has failed to reignite the Japanese growth engine’
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Will the BOJ Move in July?

Japan is headed for another lost decade as the economy faces prolonged stagnation and the yen will probably strengthen more as deflation continues, Moody’s Analytics said.

The yen surged to its strongest level in almost two years against the dollar Thursday, touching 103.55, after the Bank of Japan held back from adding stimulus while the Federal Reserve signaled a slower approach to interest-rate increases. Prime Minister Shinzo Abe decided to delay a hike in the nation’s sales tax earlier this month as economic growth remains lackluster.