The dollar-yen currency pair could potentially hit 170 or higher in the long term if Japan doesn't meaningfully change its monetary-policy stance, says RBC BlueBay Asset Management's Russel Matthews in an interview. Japan's economy, with reasonably strong growth and rising inflation, has fundamentals that should point toward a more rapid hiking cycle from the central bank, the senior portfolio manager for global macro strategy says. However, he expects only two increases a year, given that the Bank of Japan has been firmly directed by the Takaichi administration to only raise rates in a cautious manner, which he finds insufficient. The Japanese Finance Ministry's periodic intervention to support the yen also isn't a long-term solution to the weakness, he says. The dollar falls 0.9% versus the yen to 161.14. (megan.cheah@wsj.com)
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Dollar-Yen Pair Could Hit 170 Over Long Term if Japan's Policy Doesn't Change — Market Talk
The dollar-yen currency pair could potentially hit 170 or higher in the long term if Japan doesn't meaningfully change its monetary-policy stance, says RBC BlueBay Asset Management's Russel Matthews in an interview. Japan's economy, with reasonably strong growth and rising inflation, has fundamenta…