Yen might be on its way to ¥164 to the dollar
The yen might make its way back to 39-year lows against the dollar if nothing is done to stop it from weakening, a Tokyo bank warned after the currency crossed a key threshold.
It traded above ¥160 to the dollar in U.S. trading for the first time in almost a month and was back above that level again on Monday, adding to the general sense in the market that a massive, late-July intervention failed to provide lasting support for Japan’s currency.
“If there are no particular triggers, we expect that the dollar could creep back toward its pre-intervention high of just under ¥164,” according to a report by Sumitomo Mitsui Banking released on Monday.
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