Yen May Rise to 90 Should Yield Drop Below 0.6%, JPMorgan Says

By Daniel Tilles

Dec. 10 (Bloomberg) -- The Japanese yen may strengthen to 90 per dollar should the yield on the U.S. two-year Treasury note decline to less than 0.6 percent, according to JPMorgan Chase & Co.

The yen was at 92.82 per dollar as of 6:58 a.m. in London today, from 92.13 yesterday. The U.S. two-year security yielded 0.89 percent. The yen was last at 90 per dollar in August 1995.

JPMorgan made the forecast today in a note entitled ‘JPY Back to Normal Correlation.’’

To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net