Forex
US Dollar Strength Fueled by High Yields as Yen Intervention Risks Rise
Nomura forecasts that the US Dollar to Japanese Yen exchange rate will remain within a narrow range of 162.00-165.50 in the near term, driven by strong US fundamentals and higher Treasury yields.
The USD/JPY pair has been climbing back towards its highest levels since the 1980s, reaching 163.81358 as rising oil prices, resilient US economic data, and renewed expectations of further Federal Reserve tightening boost demand for the Dollar.
Nomura warns that official action becomes increasingly likely if the exchange rate pushes higher, with Japanese authorities potentially intervening to stem Yen weakness.