International | Jun 26 2006
Unexpected US dollar strength has prompted ANZ senior currency strategist Tony Morriss to re-jig the bank’s short term yen forecasts.
Morriss now forecasts the USD/JPY cross to stand at 110.00 in September 2006, at 105.00 in December 2006, at 102.00 in March 2007 and at 100.00 in June 2007.
The harsher tone coming from the US Fed regarding the risk of inflation has been key to the change in stance, with funds flowing back into the US from commodities and peripheral markets, he says.
In the meantime rising geopolitical tensions in North Korea, as well as the financial scandal surrounding Bank of Japan governor Fukui have helped to subdue the yen.
By Terry Hughes
