The strengthening of the yen in early 2018 to 110 against the US dollar means the market is already buying the rumour of a potential rate rise.
The yen will strengthen further against the dollar as Prime Minister Abe's administration aims for at least one-fifth of Japan's energy consumption to come from nuclear power by 2030. Ruffer: The 'intensely interesting' opportunity in Japan This will translate into a larger current account surplus as Japan imports less and less energy. The currency's appreciation will not impact trade volumes and export-driven business activity, but it will impact exporter earnings - as their yen-denominated sales will be lower due to the translation effect. As a result, consensus expects low s...
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