Yen
Fund managers for wealthy families in Asia are in favor of the yen as it benefits from the crisis in global financial markets.
Credit Suisse Group AG advises its banking private clients to buy the yen against the euro and South Korea won because the Japanese currency remains undervalued against the dollar. Stamford Management Pte, which oversees $ 250 million for Asia is rich, says customers the yen is set to strengthen to 110 against the dollar by the end of this month. Singapore-based Stephen Diggle, who heads Vulpes Investment Management, plans to add to assets in Japan, where the family office already has hotels and part of a nightclub in a ski resort.
The yen surpassed the 31 major currencies this year current account surplus of Japan makes it attractive to investors seeking refuge. Bank of January 29 decision of Japan Governor Haruhiko Kuroda to adopt negative interest rates failed to curb the rise of the currency.
"All existing drivers are even more strength in the yen," said Koon How Heng, foreign exchange strategist at top of unit banking and private wealth management at Credit Suisse in Singapore. "The Bank of Japan should do more to convince markets of the effectiveness of its policy of negative interest rates."
15 months High
The yen appreciated more than 7 percent against the dollar this year to 112.16 from 6:31 in London Friday. It touched 110.99 on Thursday, the strongest level since Oct. 31, 2014, the day the Bank of Japan increased unexpectedly so monetary stimulus for the second time during the term of Kuroda.
This is a disadvantage for the governor of the central bank. It needs a weaker yen to help achieve its goal of boosting Japan's inflation rate to 2 percent and maintain export competitiveness.
Stamford Management informed some of the families whose wealth he helps manage about "bullish" company on the yen, said its CEO, Jason Wang.
BOJ inefficient
"the adoption of negative interest rates despair stinks for me," Wang said. "It is similar to an admission by the BOJ that conventional monetary policy is ineffective in achieving its inflation target of 2 percent. "
Credit Suisse expects the yen will strengthen to 115 against the euro in 12 months, from 126.91 on Friday. Japan's currency gained to 11.10 win in 12 months, from 10.79, according to Heng.
In 2013, the yen fell 18 percent to 105.31 per dollar after Kuroda started quantitative and qualitative easing. It fell 12 percent in 2014 to 119.78 Additional helped by his surprise expansion of the program. The currency depreciated only 0.4 percent last year.
The weak yen has attracted tourists in Japan and boosted the occupancy rate in the four hotels that has Vulpes. The resilience of the currency will now be comforting to investors whose money Diggle puts these assets as well as its own, said former hedge fund manager. The office of the family has boutique hotels, a coffee bar, a part of a night club and a ski chalet in the resort of Nozawa Onsen in Nagano prefecture, central Japan.
"We are positively disposed to selectively add to our Japanese hotel portfolio," said Diggle, who made money in 2014 from the advance of the dollar against the euro, yen and the Australian dollar. "We see the Japanese banks are somewhat more inclined to lend money to property and corporate hospitality and it is a huge positive for a hungry industry credit for two decades."
Bloomberg
[ad_2]
Read More: Asia’s Rich Advised To Buy Yen
0 Komentar untuk "Asia’s Rich Advised To Buy Yen"