Tuesday, July 6, 2010

Bank of America (NYSE:BAC) Sees Yen Over US Dollar, Euro

Bank of America (NYSE:BAC) likes the yen against the euro and US dollar, and raised its forecast for the Japanese currency to 90 against the dollar in 2010, and 104 from 112 against the euro by the end of 2010.

“We think concerns about slower global growth are likely to constrain risk appetite for the time being, with a likelihood of temporary yen gains on risk aversion,” BAC strategists wrote in the report.

The yen is up against the major 16 currencies in 2010, gaining 17 percent already against the euro this year.

For the third quarter Bank of America's Merrill Lynch increased forecasts for the yen against the US dollar from 94 to 89, and by the end of 2011, projects it to be 97 against the dollar.

By the end of 2011 they look for the Japanese currency to by at 107 against the euro.

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