Odaily Planet Daily News: Bank of America strategists stick to their forecast that the yen will resume its decline by the end of the year, predicting that the yen will fall below 150 against the dollar. Shusuke Yamada, the bank's chief Japanese foreign exchange/interest rate strategist, said in a report that the yen may resume its decline because the market pricing overdraws the potential rate cuts of the Federal Reserve and exaggerates the prospect of capital flowing back to Japan due to the narrowing of the dollar/yen interest rate gap. Money market pricing shows that the Federal Reserve is expected to cut interest rates by more than 100 basis points this year, while Bank of America economists expect the Federal Reserve to cut interest rates by 25 basis points each three times. The bank slightly lowered its forecast for the dollar/yen exchange rate at the end of the year from 155 to 151. Yamada said that since the 1990s, the Fed's rate cuts have not always been unfavorable to the dollar/yen. "The only time the dollar/yen fell sharply was during the Fed's rate cut cycle in 2007-2008, when the global financial crisis led to the unwinding of yen carry trades and a sharp strengthening of the yen." Although the US job market has cooled recently, the risk of a continued recession in the US balance sheet and a hard landing of the economy remains limited. (Golden Ten)