Dollar Strengthens Against Yen as Intervention Wears Out

Dow Jones
Aug 10

0931 ET - Japanese investors still seek foreign investments, despite Tokyo's announced plans to redirect flows to domestic markets, Goldman Sachs economists say in a note. A Ministry of Finance report "suggests continued net purchases of foreign bonds at a sizable pace in July," Goldman says. "It may take some time to implement such a policy shift, so it feels too early to rule out. But so far, our skepticism on the low likelihood of unhedged repatriation flows due to better return prospects abroad looks fair." Goldman Sachs says a BoJ hike next month would help bring long-term strength to the yen. The yen weakens 0.7% versus the dollar, following the recent intervention.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10