Banks overconfident on yen – CBA
CURRENCY FORECASTS
The yen has been particularly weakened by Japan's reliance on oil imports. Grace said the currency is being undermined further by Japanese economic behaviour. "I've done some long-term research on the yen, and when the global economy is strong the Japanese put a lot of money offshore, which only weakens the yen further compared to other currencies," Grace said. Most banks are undervaluing USD/JPY and EUR/JPY because they are not making appropriate comparisons of trade differentials, he added.
Gr
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