Zennor AM's James Salter: Yen clearly at the wrong level

It 'will eventually strengthen'

I have just returned from a wonderful trip to Japan; the weather was excellent and trains ran on time but, importantly, I saw first-hand, how companies are adapting to a new era of corporate Japan.

Before the summer began in earnest, we told our clients that Japan's main indices would struggle to make real headway. What followed was a collapse of the Nikkei 225 and a surging currency after the Bank of Japan raised rates and the short yen trade began to unravel. Having recouped most of the losses, the BoJ tell us it plans to only tighten marginally and will "listen to markets", as its latest move to raise interest rates by 0.5% suggests. It shows it has increased confidence in the durability of inflation and growth rates in Japan. It has been trying to generate a sustainable a...