MUFG add in a morning note that the yen.........>

YEN: MUFG add in a morning note that the yen remains on the defensive and is on

track to be one of the worst performing currencies so far this month and this

year. Yen weakness has accelerated this month due to the pick-up in global

yields on the back of hawkish rhetoric from the Fed and to a lesser extent the

BoE and the ECB.

- They add, underlying inflation is expected to continue to firm in the coming

months, although it still appears that the risks are tilted in favour of

inflation coming in weaker than the BoJ's forecast for the current fiscal year.

The inflation outlook should not encourage the BoJ to shift from the current

dovish policy stance.

- The main risks to the outlook for BoJ policy come from the uncertainty over

the future of Governor Kuroda whose term expires in April of next year, which

could be impacted in part by the upcoming snap election in Japan.