Dollar May Depreciate to 95 Yen on ‘Nervous’ Market, RBC Says

By Justin Carrigan

May 13 (Bloomberg) -- The dollar may weaken to 95 yen after first strengthening to 97 yen, RBC Capital Markets said.

“The market is getting very nervous about a breakdown to the downside with 95 barriers in focus,” Sue Trinh, senior currency strategist at RBC in Sydney, wrote in an e-mailed report today. “In the near term however, the deviation from the U.S. 10-year yield, which has been a very good intraday directional cue for dollar-yen, has blown out sharply. Based on a 10-year yield of 3.20 percent, we estimate dollar-yen could correct back to 97 first.”

The dollar was little changed at 96.50 yen as of 7:06 a.m. in London. The 10-year Treasury note yielded 3.20 percent.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net