Investing: Dollar-yen could fall to 135 in ‘near future’: Wells Fargo

This photo illustration shows Japanese 10,000 yen banknotes in Tokyo on November 19, 2021. The Japanese currency has weakened sharply against the dollar in recent weeks amid expectations the Bank of Japan will lag its peers in normalizing monetary policy.

Behrouz Mehri | AFP | Getty Images

The Japanese yen may continue to see weakness against the U.S. dollar if the policies of the Bank of Japan and Federal Reserve continue to diverge, said Wells Fargo Securities’ Brendan McKenna.

“We certainly see a move up through 130, we think that’s definitely possible,” McKenna told CNBC’s “Squawk Box Asia” on Wednesday.

“Assuming BOJ policymakers stay committed to their easy monetary policy … framework, we think a move up towards maybe 135 [yen per dollar] could be likely within the very near future,” the foreign exchange strategist said.

The yen fell nearly 6% against the greenback in March, and is continuing to see losses in April.

The Japanese currency has…

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