Dollar-Yen weaken further due to Iran war, intervention: Macquarie

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Gareth Berry, Head of FX and Rates Strategy at Macquarie, says the yen will continue to weaken if the Iran war drags on, as Japan is a net energy importer. He thinks dollar-yen weakening past 163 will be the line in the sand for which intervention might occur. He also notes that the yen has not benefited from JGB yields rising, and that the end of the BOJ’s tightening cycle might drive the yen higher still.