Morgan Stanley: More Room for Yen/US Dollar Strength

On February 8th, according to the data from Jin10, Morgan Stanley strategists stated that with the market digesting the convergence of US and Japanese policy interest rates and the uncertainty related to tariffs, the yen, which has outperformed in G-10 currencies in February, has more pump potential. The yen has risen 2.4% against the US dollar this month; 'Ultimately, the sooner tariffs are implemented, the greater the downside potential for USD/JPY,' strategists Koichi Sugisaki and David Adams said in a report on February 7th. They stated, 'The market is increasingly reflecting the risk of a slowdown in rise.'