Economics
Fidelity Sees the Yen Falling as Low as 120
- BOJ’s move to control yield curve ‘is very logical:’ Fidelity
- Isn’t expecting the BOJ to expand stimulus on Nov. 1: Maruyama
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The chief investment officer of Fidelity International in Japan sees divergent monetary policies helping to weaken the yen to 110 to 120 per dollar by the end of 2017.
The Bank of Japan’s switch of focus to controlling the government bond yield curve from hoarding debt will help prevent yen gains hurting the economy, Takashi Maruyama, the chief investment officer at FIL Investments (Japan) Ltd., said in an interview. The currency could weaken significantly if expectations overseas for inflation pick up and moderate growth of around 2 percent in the U.S. can be achieved, facilitating Federal Reserve rate increases, he said.