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Strategies & Market Trends : Asia Forum

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To: Worswick who wrote (896)1/15/1998 9:29:00 AM
From: Geoff Nunn  Read Replies (1) of 9980
 
Worswick, if Japanese CEOs are putting their own personal funds in U.S. banks, it suggests to me they expect the yen to go lower. A weakening yen, though, doesn't necessarily correlate to a weakening Japanese economy. If, for example, the economy expands and Japanese incomes rise, the demand for imports would rise, putting pressure on the yen. Rising interest rates abroad (or a widening differential) would also put pressure on the yen. I guess I don't get your drift. Are you suggesting the CEOs fear Japanese banks may default on their deposits?

BTW, I've really enjoyed reading your posts.

Geoff
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