thoughts?
>>Tuesday December 15, 4:14 pm Eastern Time
Merrill sees US dollar surging to 160 yen in 1999
NEW YORK, Dec 15 (Reuters) - The dollar should shake free of its recent retrenchment against the Japanese yen and rally significantly in 1999, said Michael Rosenberg, currency strategist at Merrill Lynch & Co Inc.
''The dollar is going to rise quite sharply in 1999 to the 160 level against the yen,'' Rosenberg said at Merrill Lynch's annual outlook presentation on Tuesday.
Rosenberg said dollar/yen will stabilize after its collapse in October and strengthen as Japan's economy remains stagnant. In an effort to stimulate growth, Japan would probably ease monetary policy over the coming year, the strategist said.
''The fundamental reason is that Japan is mired in a very steep economic downturn. Our forecast all the way out to the year 2000 continues to show declining economic growth and rising unemployment,'' he said.
Dollar/yen at noon on Tuesday was higher to 116.61/66 versus 115.52/62 at the close on Monday. The pair hit an eight-year high at 147.63 in August.
Turning to Europe's upcoming monetary union, Rosenberg forecast a slight strengthening of the dollar against the new euro next year but said interest rate differentials between the United States and the euro region would stay fairly constant.
The dollar would get its boost from the ability of U.S. corporations to adapt better in lean economic times, he said.<< |
