Bank of America: If the Fed delays a rate cut, the yen could fall to 160 against the dollar

Bank of America believes that unless the Federal Reserve cuts interest rates this year, the yen may fall to 160 against the dollar. Thanos Vamvakidis, the bank's head of global G-10 monetary strategy, said any intervention by the Bank of Japan to try to prop up the local currency before the U.S. begins to ease monetary policy will be ineffective. The yen has hit a 30-year low and is testing the key point at 152, which many believe will force the Japanese authorities to act. Vamvakidis said the intervention was "quite possible, but more like going against the wind." He expects the yen to rise to 142 against the dollar if the Fed does start cutting interest rates as the market expects.