BLBG: Japanese Yen to Extend Gains on Growth, Debt Concern, Bank of Tokyo Says
The yen will probably extend gains against peers amid the sovereign debt crisis in Europe and concern that the global economic recovery is stalling, according to Bank of Tokyo-Mitsubishi UFJ Ltd.
“The strong performance of the yen is expected to continue while sovereign-debt concerns remain elevated and investors re- adjust their expectations for global growth lower,” Lee Hardman, a London-based foreign-exchange economist at the lender, wrote in a note today. “The adjustment lower for risk assets has only just begun, leaving further scope for yen outperformance alongside other safe-haven currencies.”
The Japanese currency rose against all 16 of its most- actively traded peers this year. It was 0.4 percent weaker at 108.63 per euro as of 1:50 p.m. in London, leaving its gain since Dec. 31 at 18.5 percent.
To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net
