A drop in core consumer prices would support newly installed Prime Minister Shinzo Abe’s case to add stimulus.
Further depreciation of the yen versus the dollar is one of the surest bets going into the new year, according to John Taylor, founder and chairman of New York-based currency hedge fund FX Concepts LLC. The yen will weaken to 90 per dollar before a resumption in risk aversion prompts investors to return to traditional refuge currencies, he said.
The Japanese currency has tumbled 14 percent this year, the biggest drop among the 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar is the second-worst performer with a 3 percent slide, while the euro has lost 0.5 percent. Norway’s krone is the best performer, climbing 4.7 percent, the indexes show.
The Istanbul Stock Exchange National 100 Index advanced for a fourth day, rising 0.6 percent to a record 78,454.19. Turkey was raised to investment grade by Fitch Ratings last month.