Yen tipped for 2007 growth
The yen has been tipped to rise alongside Bank of Japan rates during 2007, some of the only banks to correctly predict last year's fall have predicted.
The yen traded at 118.73 against the dollar in early Monday currency trading, up from ¥119.05 yesterday.
The Japanese currency fell 11 per cent against the euro during 2006, 13 per cent against the UK pound and 1.2 per cent against the dollar.
Analysts at the Bank of Tokyo-Mitsubishi, Barclays and the Investors Bank & Trust, who were among the few to predict the falls in 2006, now say that the currency is set to grow.
Versus the dollar, the yen was expected to grow by at least eight per cent to ¥109 or ¥112 in 2007, the most for three years, and make the first gains on the euro since 1999.
"We're looking for appreciation," said Asamu Takashima of Tokyo-Mistubishi. "Japan is in a tightening cycle."