Weekly Forex Outlook: Dollar Set For Wild Ride
TOKYO (Nikkei)--The dollar is likely to fluctuate wildly against the yen this week. Market expectations are pinned on the range of 108.00-114.00 yen, watchers said.
Amid a lack of fresh incentives, overseas investors may move to buy Japanese shares on hopes for the country's economic recovery, and domestic exporters will sell dollars for the yen, traders said.
If speculation over coordinated interventions to support the dollar emerges after the Berlin meeting of deputy finance ministers and central bankers from the G-7 countries, slated to be held earlier this week, the yen will probably be engulfed by selling pressure, they said.
Some players pointed to the possibility that Japan will urge other G-7 members to take joint action to cap the yen's rise at the meeting. If the meeting fails to make any comments on the dollar-yen rate, however, disappointment could spread to accelerate the Japanese currency's advance, other players said.
The U.S. employment data, to be announced on Friday, is another focus of attention. If the data show tighter labor supply again, expectations for additional U.S. rate hikes will prevail, which would cause U.S. stock and bond prices to swing wildly and prompt dollar selling, traders said.
(The Nihon Keizai Shimbun) |
