Prolongation of loans and the collapse of the yen

The yen will be weaker

In brief: The new fiscal measures in Japan will lead to new problems for the yen.

Currency analysts of the Credit Suisse believes that the new measures for prolonging loans will not have any more pressure on the yen. The bank’s strategy note that the latest figures published by the Ministry of Finance in Japan, indicate an increase in demand in April by foreign investors on short-term bills and Japanese believe that the yen extract direct benefits from the situation in which investors had long been trying to avoid euro.

Analysts CS constant in their views and predict a significant weakening of the yen toward the end of the year, when one-off rates in the U.S. and the Eurozone will begin to increase again.

Anrey Torbinski
2010-06-15 22:23, Currency news.

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