Invite friends and get generous gifts! 185 yuan red envelope is waiting for you! Fund Mall purchases starting at 10% off
Former International Monetary Fund (IMF) economist and current hedge fund Eurizon SLJ Capital CEO Ren Yongli said on Monday (February 20) that with the Federal Reserve (FED) If interest rates are raised, USD/JPY will fall to the 120 mark within 6 months, but this will also be the lowest level that the yen can fall to.
Ren Yongli said in an interview, “Because the Bank of Japan (BOJ)’s policy of controlling yields and increasing stimulus through bond purchases has reached its limit, the yen will rebound to 100 against the US dollar in early 2018.”
On February 10, the Bank of Japan purchased 320 billion yen of government bonds with maturities between 10 and 40 years to curb rising yields, which was 20 billion yen more than it usually purchases, but this It also puzzled the market.
This is the Bank of Japan’s second purchase of Japanese bonds of this type since September last year. In September last year, the central bank implemented a “yield curve” control policy, aiming to maintain the 10-year government bond yield around zero and actively try to control the yield curve.
Ren Yongli believes that “the Bank of Japan is closer to the limit of non-traditional monetary policy than any other central bank. Once all means are exhausted, the yen will return to a fair value of around 90 against the US dollar.”
