Dollar-Yen Can Be Exciting Currency Pair for 2026, Jane Foley Says

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00:00You know, if I look at the on WCRS, the world currency ranker on the Bloomberg terminal,

00:05all of the majors, you mentioned the crona or the multiple cronin, they've all done better

00:11than the dollar. All of the majors have outperformed the dollar this year to date. And even if I

00:16expand that, only, you know, Argentina, Turkey and India have have done worse. So does this

00:26dollar weakness look set to continue? Well, that is the consensus. But, you know, there is a slightly

00:31different perspective here, because if you put in half year to date into that page on Bloomberg,

00:37the dollar has actually been performing relatively well. I mean, it's not the best performer right

00:41now, but it has been in recent weeks. It has been at the top of that table. So from that point of

00:47view, you know, we have got a slightly different impact coming through from the dollar since the

00:53summer. All of that decline really was registered in the first part of the year. And that's pretty

00:58interesting, because obviously, you know, we've seen the AI trade again gain momentum in the second

01:04half of the year, really since June. That's perhaps helped give the dollar, you know, a better poise,

01:11but also the fact that, you know, whilst there has been disruption from Trump's tariff policies,

01:15not as much as the market feared at the start of the year. So from that point of view,

01:20the dollar really has settled down. And you could take that and argue that, oh, actually,

01:26all of these market consensus for a weaker dollar in 2026, maybe that should be moderated. If again,

01:34you know, we get perhaps a U.S. economy, maybe even outperforming market expectations.

01:39Jane, getting away from the U.S. dollar, what are the most important,

01:42what are the other most important pairs that you're watching?

01:44Well, I mean, clearly, euro dollar, dollar yen. I mean, cable's been interesting. It's been really

01:51sticky. You know, the pound is sort of held up above that 130 level really quite well. But, you know,

01:57I do think that for 2026, the dollar yen could be perhaps the most exciting currency pair out there.

02:03The yen is extremely, extremely cheap. And it's quite possible that with other central banks

02:08potentially hiking interest rates by the end of next year, maybe the Bank of Japan has to accelerate

02:13the pace of its interest rate hike. So an interesting currency pair indeed.