No significant strength is predicted for the Japanese currency except if a “negative shock” occurs, according to Nikko Asset Management.
John Vail, the Chief Global Strategist at Nikko, said it would be shocking to see (dollar-yen) down to 100 level. He added the stable levels of 104 to 106 are seemingly satisfying to people.
According to him, economic leaders are firmly opposed to strong Japanese currency. Any expansion in yen won’t be beneficial to the exporters as it causes more expensive exports and brings down Japan’s competitiveness in the global market.
Vail continued foreigners have turned back into Japan’s equity markets and this will, in turn, boost up the stock market. Their return comes as a result of the support from Japan’s reformist prime minister.