Bloomberg
The world’s worst-performing major currency looks poised for an impressive turnaround in 2023 as its two key drivers — a hawkish Federal Reserve and a dovish Bank of Japan — swap places in the eyes of some investors.
The yen — a favoured short against the dollar for a majority of this year — could rally more than 9% from current levels next year, according to Barclays Plc and Nomura Holdings Inc., while Vontobel Asset Management AG said fair value is below 100 per dollar — over 35% stronger.
The widening yield gap between the US and Japan, with the former hiking rates aggressively and the latter keeping them at rock-bottom levels to boost the economy, helped push the currency down as much as 25% this year.