Yen to strengthen on sunny growth forecasts say analysts
The yen is due to strengthen this week on expectations that the Bank of Japan (BoJ) will raise growth forecasts, analysts have predicted.
The yen rose from 117.60 against the dollar to 117.55 in pre-weekend trading. Sterling rose to $1.898 and was trading 67.04p against the euro on the currency market.
The BoJ's October outlook will be published on Tuesday with media reports claiming that it will show full-year growth forecasts rising from two to 2.5 per cent.
An expected period of sustained growth could push the yen to between 110 and 115 against the dollar, Nigel Richardson of Axa Investment Managers told Bloomberg.
"The yen will eventually begin to rise back against the dollar," said Mr Richardson. "It's been a steady flow of international money into the Japanese equity market and we expect more."
The country is experiencing its longest period of sustained growth since World War two and is entering its 57th month of growth.