Westpac's Callow: See Dollar-Yen at 118 by June

The transcript discusses the dollar yen market, predicting volatility and potential pullbacks. It highlights the impact of yield spreads and BOJ policies on the yen, and the influence of Trump's policies on risk premiums and the stock market. The analysis also covers major currencies, including the impact of Brexit on sterling, and anticipates Fed rate hikes.

What is the long-term target for the dollar-yen exchange rate by the end of the year?

• 120

• 111

• 105

• 118

Which factor is primarily responsible for the weakening of the yen according to the discussion?

• Trade policies

• Yield spreads

• Stock market performance

• Corporate tax cuts

What is one of the main reasons for the stock market's support despite recent falls?

• Decreasing interest rates

• Rising oil prices

• Corporate tax cuts

• Increased immigration

Which currency is expected to face more volatility due to Brexit concerns?

• Euro

• Japanese yen

• Swiss franc

• British pound

What is the expected impact of Trump's fiscal policy on the dollar-yen exchange rate?

• Neutral

• Deflationary

• Depreciative

• Reflationary