Yen May Rise as BOJ More Likely to Act Than Fed, Gyohten Says

July 15 (Bloomberg) -- The yen may rise as high as 100 per dollar this year as the Bank of Japan is more likely to raise interest rates than the Federal Reserve, said Toyoo Gyohten, former currency-policy chief at Japan's Ministry of Finance.

The Bank of Japan, which ends its monthly policy meeting today, may lift borrowing costs should inflation accelerate and the economy sustain growth of at least 1 percent, Gyohten said. Futures traders have ruled out the chance of a Fed increase next month following a collapse in the share prices of Fannie Mae and Freddie Mac, the biggest U.S. mortgage finance companies.

Source: Bloomberg


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