Japanese yen to remain weak against US dollar

01/22/07 - ING Financial Markets

LONDON, January 22 (newratings.com) – Analyst Chris Turner of ING Financial Markets says that the Japanese yen is likely to remain weak against the US dollar.

In a research note published this morning, the analyst mentions that some of the arguments in favour of a weak yen are the interest of Japanese investors in foreign securities, a strong FDI outflow from the country as well as the withdrawal of foreign money from Japan. Healthy US consumption, aided by a decline in oil prices, has helped the dollar remain strong, the analyst says. If the yen fails to gain support from the 4Q06 GDP data or G7 meeting, both of which are scheduled for mid-February, the Japanese currency could fall to as much as 125/126 for a US dollar, ING Financial Markets adds.