The dollar-yen exchange rate, currently in the high 150s, seems fundamentally mispriced given Japan's affordability.
Despite wide rate differentials and expectations for continued U.S. exceptionalism, the yen's weakness is unsustainable.
Expect a significant decline in the dollar-yen rate throughout 2025, potentially falling below 140 by year-end.
This represents a substantial move and a potential investment opportunity.
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Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyJanuary 7th, 2025 Featuring:
Matt Hornbach, Global Head of Macro Strategy at Morgan Stanley, on his top surprises for 2025 and this month's Fed meeting
John Bolton, former UN ambassador and US National Security Advisor and now the founder of the Foundation for American Security and Freedom, discusses national security concerns in the US and the second Trump administration, as well as his recent WSJ column on Kash Patel
John Kay, British economist and Fellow at St. John's Oxford, discusses his new book "The Corporation in the Twenty-First Century"