Structural forces, including concerns around Japan's fiscal trajectory under the Takaichi administration, are likely to persist and continue to weigh on the yen, says Eastspring Investments' Rong Ren Goh in an email. The market's view that the Bank of Japan is behind the curve is also pressuring the currency, he says. Eastspring has maintained an underweight bias for the currency in portfolios since the start of the year, using sharp yen rallies that appear intervention-related as opportunities to rebuild short yen exposure, says Goh, Asian fixed-income head of macro and thematics. Eastspring remains comfortable maintaining underweight positions in yen until there is a clearer shift in the monetary or fiscal backdrop, he adds. The dollar rises 0.1% versus the yen to 162.67. (megan.cheah@wsj.com)
Dow Jones Newswires
Concerns Over Japan's Fiscal Path, Central Bank Could Keep Pressuring Yen — Market Talk
- Sources
- Dow Jones Newswires
- Markets
- Forex
- Language
- English
Structural forces, including concerns around Japan's fiscal trajectory under the Takaichi administration, are likely to persist and continue to weigh on the yen, says Eastspring Investments' Rong Ren Goh in an email. The market's view that the Bank of Japan is behind the curve is also pressuring th…