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Yen at 120 Lonely Call No More for Analyst Who Got It Right

  • AMP Capital, BNP Paribas see yen surpassing 125.86 low
  • U.S.-Japan yield differential to drive yen: Bank of America
Bloomberg business news

BNP's Saywell Sees Dollar-Yen at Record-High 1.28

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Calling for a weaker yen was a lonely post six months ago for Royal Bank of Scotland Group Plc’s Mansoor Mohi-uddin. Now the Singapore-based strategist is getting plenty of company from others who are joining him in forecasting the currency will slide to 120 per dollar.

While Bank of America Corp. expects the yen to reach that level at the end of 2017, Sydney-based asset manager AMP Capital Investors Ltd. and BNP Paribas SA are even more bearish, predicting a slump past the 13-year low of 125.86 reached in June last year. Morgan Stanley sees the Japanese currency at 130 by mid-2018. In the options market, the premium on contracts to buy yen in three months fell to the lowest level since November 2015.