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11 Sep 2013
Flash: Yen to depreciate on outflows? - Nomura
FXstreet.com (London) - Yujiro Goto, strategist at Nomura eyes further weakness in the Japanese currency due to investment outflows.
Key Quotes:
“Japanese firms tend to increase foreign direct investment (FDI) when they increase business investment in Japan”.
“The stronger investment plan suggests to us that Japanese FDI is likely to remain elevated, even though JPY has been weakening”.
“In fact, Japanese FDI recorded its biggest monthly outflows from Japan ever in July (JPY3734bn or USD37bn)”.
“If Japanese firms keep investing outside Japan at the current pace, FDI outflows this year could exceed the previous record amount in 2008 (JPY13.2trn)”.
“While FDI is expected to remain elevated, the Japanese trade deficit is estimated to have widened in August”.
“Money flows related to Japanese non-financial business activity points to further JPY weakness”.
Key Quotes:
“Japanese firms tend to increase foreign direct investment (FDI) when they increase business investment in Japan”.
“The stronger investment plan suggests to us that Japanese FDI is likely to remain elevated, even though JPY has been weakening”.
“In fact, Japanese FDI recorded its biggest monthly outflows from Japan ever in July (JPY3734bn or USD37bn)”.
“If Japanese firms keep investing outside Japan at the current pace, FDI outflows this year could exceed the previous record amount in 2008 (JPY13.2trn)”.
“While FDI is expected to remain elevated, the Japanese trade deficit is estimated to have widened in August”.
“Money flows related to Japanese non-financial business activity points to further JPY weakness”.