Latest news with #YusukeMiyairi
Japan Times
2 days ago
- Business
- Japan Times
Nomura flags risk of sharp yen rally on U.S.-Japan policy pressure
Japanese investors pivoting out of U.S. assets as yen yields rise — combined with implicit pressure from Washington over the exchange rate during trade talks — could push the currency about 6% higher against the dollar in the coming months, according to Nomura Holdings. The investment bank, among Japan's largest, now recommends shorting the greenback versus the yen, targeting a move in the pair to ¥136 by the end of September, from around ¥145 currently. Nomura's Yusuke Miyairi, Yujiro Goto and Dominic Bunning expect that the Bank of Japan's steady pace of rate hikes, will "encourage domestic investors to increase more domestic bond than overseas bond exposure,' they wrote in a Friday report to clients. The team also flagged the possibility that U.S. concerns over the dollar-yen exchange rate will "intensify' should the Japanese currency weaken, especially amid sensitive bilateral trade negotiations. While the analysts don't anticipate any symbolic foreign-exchange deal between the U.S. and Japan, "the market continues to expect there exists a 'tacit' agreement for a weaker' dollar. In a semiannual currency report released Thursday, the U.S. Treasury called on the Bank of Japan to keep hiking interest rates. The tightening of monetary policy supports "a normalization of the yen's weakness against the dollar,' the Treasury said, as well as "a much-needed structural rebalancing of bilateral trade.' The Nomura team exited a previous short recommendation on dollar-yen in early May, after a breakthrough in U.S.-China trade negotiations led to widespread selling of haven assets like the Japanese currency. Still, the yen has rallied about 3.5% against the dollar so far in the second quarter. Elsewhere on Friday, strategists at another large Japanese bank, MUFG, reiterated their view that investors sell the dollar versus the yen. MUFG targets a move in the pair to ¥138.30. Among all the sell-side currency forecasts compiled by Bloomberg, the consensus is for the dollar-yen pair to trade at ¥142 by the third quarter.
Bloomberg
3 days ago
- Business
- Bloomberg
Nomura Flags Risk of Sharp Yen Rally on US-Japan Policy Pressure
Japanese investors pivoting out of US assets as yen yields rise — combined with implicit pressure from Washington over the exchange rate during trade talks — could push the currency about 6% higher against the dollar in the coming months, according to Nomura Holdings, Inc. The investment bank, among Japan's largest, now recommends shorting the greenback versus the yen, targeting a move in the pair to ¥136 by the end of September, from around ¥145 currently. Nomura's Yusuke Miyairi, Yujiro Goto and Dominic Bunning expect that the Bank of Japan 's steady pace of rate hikes, will 'encourage domestic investors to increase more domestic bond than overseas bond exposure,' they wrote in a Friday report to clients.
