Banks bet on yen amid subprime fallout
The bank's one-month USD/JPY forecast, submitted on January 11, was particularly accurate at 107, compared with the February 11 spot rate of 106.82. But this was a significant revision from the bank's three-month forecast of 115.
John Kyriapoulos, NAB's head of currency strategy in Sydney, said the revision was based on expectations that more US subprime writedowns were likely, and that investor risk appetite would weaken.
Yen strength also led to Scotia Capital's rise to the top of the 12-month
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