February 27, 1997
A Direction of the Foreign Exchange—My View Is:
by Martin A. Armstrong, Chairman of Princeton Economic Institute Inc.
The US Dollar is now in consolidating phase against Japanese Yen. The Dollar will move sideways until the end of March mainly because of Japanese investors’ selling US treasury bonds and the US stocks to generate profits for the fiscal year-end account closing. The Yen’s appreciation up to 120.50 level will be possible. However in and after April, the Dollar will move to challenge 125.00 and then it will reach 134.00 by June – July period. In July, Hong-kong is scheduled to be returned to China and Hungary, Portugal and Czeck are expected to join the NATO. With Russia being embarrassed from the view-point of the security, a tense atmosphere is sprouting in Europe. These contain a main cause for the US Dollar rally.