Japanese Yen Stronger Against Dollar in 2007 - Analysts
Analysts on average forecast a fall in the dollar to Y111 by the end of June 2007 and Y108 by the end of 2007, according to a survey by Dow Jones Newswires. That would be a fall of 8% from its current level and much larger than the 0.2 % fall in the dollar since the start of 2006.
On Dec. 15, the dollar was trading around Y118.2 1. Analysts continue to forecast a sharp rise in the yen despite being disappointed after making similar forecasts in the past. Source: Shaw - Yen, Yuan Stronger in 2007 |
Yeah, we'll see about that. I didn't read the article you posted, but did you see anything about the fact that the yen will weaken to 125 yen to the dollar before it starts to strengthen. The BOJ is expected to raise rates this week, but it will not change the dollar to yen because the Fed is keeping a strong dollar. Also the 108 in June may not happen if the BOJ decides to not make a second raise in their lending rates. If it even drops to 115, I'll be shocked.
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Today it is 120/$1 and it is the lowest I have seen the yen in many a year. If it goes to 125 I'm buying yen and lots of it because it will not be this low again. The last time I think I saw it at 125 was in 1988 when I returned to the states.
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Supposedly it will bottom out in March and start to strengthen again around June. Unfortunately the student loan needs repaying so I don't have the luxury of waiting around for that.
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I am taking a beating on this one, but if any of you ever wanted to come over to Japan your money will go the furthest now and in the next few months. |
BOJ Raises Rates!
You heard right, from .25% to .5%! It's crazy over here, people are dancing in the streets and bashing bottles of champagne over their heads!
No, not really but I am a little excited. It is a good sign that the exchange rate may get a little better by mid 2007. |
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