Wall Street and Japan’s largest banks are starting to see a similar outlook for the yen, saying its advance could break the barrier of ¥100 to the dollar next year.
JPMorgan Chase & Co., Goldman Sachs Group Inc and BNP Paribas SA are all forecasting that the yen will hit the century mark for the first time in four years in 2021. Rarer still, domestic giants Mizuho Bank Ltd. and MUFG Bank Ltd. are joining them, with estimates that the yen could even push to ¥98, a level unseen since 2013.
The yen at ¥100 to the dollar is a tough call for Japan’s banks, mainly because it’s the point where domestic exporters start losing money. Now the greenback’s weakening trend is closing a traditional gap between local and global perspectives on the yen.
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