HALISTER1: Dymon Hedge Fund Sees Dollar at 130 Yen on Fed After 56% Return

Dymon Hedge Fund Sees Dollar at 130 Yen on Fed After 56% Return

(Bloomberg) -- Dymon Asia Capital (Singapore), which reaped a 56% return in 2016 betting on a stronger dollar, predicts USD/JPY rally will extend to a 15-year high of 130 as investors are underestimating the pace of U.S. policy tightening.
  • The Fed is set to raise interest rates up to four times in 2017, starting in March, should President-elect Donald Trump fulfill his pledge to unleash lower taxes and fiscal spending, said Danny Yong, chief investment officer of the Singapore-based hedge fund
    • This will boost 10-year Treasury yields to at least 3.5%
  • Yong, who is also bullish on gold, holds a bearish view on the currencies of China, South Korea, Singapore and Taiwan
    • Expects the yuan to fall to 7.50 this year against the dollar, the weakest level since 2007
    • This recovery is very positive for the U.S., but likely to be partially at the expense of the rest of the world, especially nations which are heavily dependent on exports,’’ Yong said.
  • See story NSN OJNIY56K50XZ
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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0381417D SP (Dymon Asia Capital Singapore Pte Ltd)

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