Dollar uptrend against yen seen in 1998

The dollar could test 140 yen in January or February amid instability in Japan8217;s financial markets and a possible political crisis for the government of prime minister Ryutaro Hashimoto, said Takeshi Hanai, executive manager of the Industrial Bank of Japan IBJ.

quot;The focus next year is whether Japan can escape from financial system uncertainties. That is to say, whether Japan can adjust its fiscal and economic policies,quot; Hanai said. quot;If the government does not decide to temporarily shelve its fiscal reform efforts, the Japanese economy could be bogged down,quot; he added. Dealers said an anticipated slowdown in Japan8217;s real economic growth was the main reason for their bearish outlook for the yen in the first half of 1998.