Morgan Stanley Sees Yen Plummeting to 163: Dollar Strengthened

Morgan Stanley strategists are predicting a decline in the value of the Japanese yen. The team, which includes Koichi Sugisaki, David Adams, and Andrew Watrous, believes that traders will rebuild carry trades and the underlying fundamentals point to a weaker currency.

The yen has already weakened significantly this year, dropping to 163 per dollar in late July after a rare coordinated intervention by Japanese authorities. Morgan Stanley's strategists are now targeting this level again as they recommend a new trade.

The team is recommending that traders take advantage of the expected yen weakness and buy the currency at current levels with the expectation of selling it when the price reaches 163 per dollar.