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Safe haven demand to lift yen further

In the last week, the yen has again broken through 80 against the dollar, taking the currency to its strongest level since February. The yen has strengthened despite the recent increase in the ceiling for the Bank of Japan’s JGB purchases under the Asset Purchase Program. In fact, the exchange rate is currently being driven by events outside Japan rather than by the actions of the Bank. We expect the yen to strengthen further.

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