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Trump-Abe Rapport Won’t Stop Yen From Passing 100, JPMorgan Says

  • Yen’s initial reaction is to fall after friendly summit
  • U.S. concerns with weaker yen will resurface, Sasaki forecasts

Japanese Prime Minister Shinzo Abe’s success in avoiding any clash over exchange rates with U.S. President Donald Trump at a summit meeting hasn’t resolved underlying conflict, according to JPMorgan Chase & Co.

"We continue to think politics will be a main driver for dollar-yen this year," Tohru Sasaki, head of Japan markets research at JPMorgan in Tokyo, wrote in a Feb. 13 report. "Japan will soon realize that the peaceful weekend in Florida is over and face reality. The U.S.’s protectionism would create downward pressure on the dollar against funding currencies."