Dollar weakening underestimated

Attrill said the market was over-confident in the view that the Bank of Japan and the Ministry of Finance would intervene to protect the currency as a result of this pressure. He predicted a $/¥ level of 104 for the month to December 6, the joint strongest prediction for the position of the yen. He said: "We took the view that the general upward pressure on the yen would not lead to resistance from the Japanese authorities as early as many people anticipated." He pointed out that the currency ha