The Japanese yen is unlikely to extend its falls against the dollar much further as it hits a 40-year low, UBS Global Wealth Management analysts say in a note. "We would caution against chasing the yen weaker, given already crowded investor positioning, and authorities' readiness to intervene," they say. In coming months, the yen could recover against the dollar if markets scale back expectations for Federal Reserve interest-rate rises. However, in the nearer term, the yen is likely to stay under pressure from persistent negative rates adjusted for inflation even though the Bank of Japan is on track to raise rates further, they say. The dollar rises to as high as 162.50 yen, according to LSEG. (renae.dyer@wsj.com)
Dow Jones Newswires
Japanese Yen Could Stay Weak But Further Falls Likely to be Limited — Market Talk
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The Japanese yen is unlikely to extend its falls against the dollar much further as it hits a 40-year low, UBS Global Wealth Management analysts say in a note. "We would caution against chasing the yen weaker, given already crowded investor positioning, and authorities' readiness to intervene," the…