Yen analysts see US growth outlook, rates driving currency

Tokyo

YEN analysts in Tokyo pretty much agree: the outlook for US economic growth and interest rates will determine where Japan's currency goes next year. And that's where the consensus ends.

As with US economists, Japanese currency strategists are divided on whether a strong American job market will propel inflationary pressures that finally send 10-year Treasury yields climbing. If they do, a widening US yield advantage is seen lifting the dollar.