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3 Apr 2013
Forex Flash: Biggest Toshin purchases since mid 2011 - Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that Japanese investors are estimated to have purchased JPY169bn (USD1.8bn) of foreign currency-denominated toshins last week according to NRI.
He adds that this is the first net buying in four weeks, and this is the biggest weekly net purchases since June 2011. Further, he notes that as there is a seasonality that toshin momentum rises during the final week of each month, it is too early to conclude the momentum has picked up. Nonetheless, the pick-up suggests momentum is likely to recover gradually in FY2013. At the same time however, Goto comments that at the same time, toshin investment in domestic assets accelerated even more aggressively last week, suggesting preference for domestic assets remains strong amid expectations of bolder economic policy responses and smaller carriers of foreign assets.
He adds that this is the first net buying in four weeks, and this is the biggest weekly net purchases since June 2011. Further, he notes that as there is a seasonality that toshin momentum rises during the final week of each month, it is too early to conclude the momentum has picked up. Nonetheless, the pick-up suggests momentum is likely to recover gradually in FY2013. At the same time however, Goto comments that at the same time, toshin investment in domestic assets accelerated even more aggressively last week, suggesting preference for domestic assets remains strong amid expectations of bolder economic policy responses and smaller carriers of foreign assets.