Wednesday, September 9, 2009

RBS expects to strengthen the yen by the end of the year

As currency strategists believe RBS, new perspectives in the political life of Japan will contribute to strengthening the yen against the U.S. dollar and European currencies over the next few months. By year end, bank analysts predict a strengthening Japanese yen, coupled with the dollar to the level of 88.00, paired with the euro - to a mark of 122.00. However, the Bank believes that as a financing tool for higher-yielding assets of Japanese yen will give the dollar and European currencies. Despite the fact that the government formed Democratic Party of Japan, is not configured to interfere in the domestic currency, the economy may change this attitude. RBS analysts note that in the long-term fundamental factors, in particular, deflation and the state budget, does not agree with the strengthening of the yen.

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