Yen unlikely to hold on to post-Brexit-vote strength

The UK’s vote to leave the EU has pushed the yen to levels last seen when Quantitative and Qualitative Easing was first launched, while the Nikkei has slumped by 8%. These moves increase the chances of direct intervention by Japanese policymakers to weaken the currency and also that the Bank of Japan steps up its policy support next month. As such, we do not expect the yen to remain this strong for long.


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