Deutsche Bank strategists believe........>

DOLLAR-YEN: Deutsche Bank strategists believe USD/JPY will test the topside of

the Y115-120 range next year. They note "In such cases, Japanese share prices

should also climb further. GPIF's risk assets, i.e., its domestic stocks and

foreign stocks and bonds, should easily meet its policy asset mix." The GPIF

should play a powerful role in suppressing yen appreciation through its buying

on weakness in USD and other foreign currency assets, but is unlikely to be a

main player in weakening the yen beyond Y115.

Deutsche add, looking at the medium term, "we cannot rule out the GPIF appearing

as a seller (including hedging) and capping the rise if the USD/JPY should reach

Y115-120 in the coming 1-2 years as expected." However, at the same time, "we do

not believe it will sell sufficiently to cause a major deterioration in risk

asset markets."