The dollar-yen's fall below the key 100 mark could just be
the start of a downtrend for the currency pair, analysts tell CNBC. The dollar-yen fell as low as 98.86 on Monday
on weak U.S. manufacturing data, down more than 4 percent from a four and half
year high of 103.74 hit in May. On Tuesday the dollar-yen was trading around
99.
Ed Ponsi, managing director at Barchetta Capital Management,
said yen weakness is losing momentum as support for recent moves by the Bank of
Japan (BOJ) start showing "cracks." “What happened last week was the
IMF [International Monetary Fund] basically pulled their support or
encouragement away from Japan for their recent activities, saying that the yen
perhaps had fallen too far, that's a complete 180 [degrees turn] from what the
IMF said before," Ponsi told CNBC Asia's "Squawk Box."
He was referring to senior IMF official David Lipton's
comments on Friday that the yen's depreciation since last year is below a level
consistent with Japan 's
medium to long-term economic fundamentals….
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