Wednesday, September 4, 2013
Yen May Fall If IOC Chooses Tokyo For '20 Olympics
TOKYO (NQN)--Investors are closely examining market sentiment ahead of the release of U.S. jobs data for August and the International Olympic Committee meeting this weekend.
Stocks are expected to rise and the yen to weaken if Tokyo is chosen as the venue for the 2020 Summer Games at the IOC meeting in Buenos Aires on Saturday, local time.
According to major British bookmaker William Hill, Tokyo is the favorite to host the games, at 1.6-to-1 over the other two finalists, Madrid, at 4-to-1, and Istanbul at 4.5-to-1.
An official at Credit Agricole Corporate and Investment Bank said short-term investors will move to sell the yen if Tokyo is selected because those with an appetite for risk will unload the Japanese currency.
If Tokyo wins the bid, the 2020 Games will be Japan's first time to host the Summer Olympiad in 56 years. The city was the site of the Summer Games in 1964. With the IOC meeting approaching, investors are focusing more closely on the currency market. There are few obvious cases in which a decision on the location of the games affected the currency of the host country. Thus, yen-selling in the event Tokyo is chosen may be short-lived.
--Translated from an article by Nikkei Quick News staff writer Yoshihiro Hara