Yen Has Room to Run as BOJ Spurs Biggest Surge Since 1998
- Japanese currency may hit 125 per dollar next month: Juckes
- Central bank shocked markets with sudden, hawkish move
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The Bank of Japan’s sudden policy adjustment is ramping up pressure on the country’s international investors to hedge their foreign assets, a move that could send the yen even higher, according to Societe Generale SA.
The currency — which at one point on Tuesday soared close to 5% and hit a level of 130.58 against the greenback and notched its biggest one-day advance this century — could strengthen to 125 per dollar in January as Japanese money managers adapt to the central bank’s more hawkish stance, said Kit Juckes, SocGen’s chief foreign-exchange strategist.