The yen may revisit this year’s record high against the dollar as Japanese investors refrain from investing in overseas assets to reduce risk following the nation’s biggest earthquake, according to JPMorgan Chase & Co.
Toyota Motor Corp. , the automaker that built 45 percent of its cars in Japan last year, may need to produce more abroad because of the yen’s near-record strength following the nation’s most powerful earthquake.
Australia’s dollar fell along with Asian stocks amid concern the European Central Bank’s cut in interest rates yesterday won’t be enough to stem the region’s debt crisis, damping demand for riskier assets.
There’s been no better currency in 2011 than the yen and strategists forecast more gains, even as Japan promises to intervene again in foreign-exchange markets and expands the world’s biggest debt burden.
Tighter regulations on currency trading in Japan are coming just in time to help to Finance Minister Yoshihiko Noda rein in a yen that’s the most volatile in more than two months and trading near a record high.