TOKYO: Nomura Holdings Inc expects the yen to strengthen against the dollar later this year, according to the firm’s head of trading and investment banking.

“We think it should head back toward 140,” said Christopher Willcox in an interview yesterday with Bloomberg TV.

A stronger yen would be “primarily driven by the force of the United States Federal Reserve easing further down the road and somewhat tighter Japan policy.”

The yen hit a 34-year low on Wednesday.

This immediately prompted Japanese officials to warn they might take measures to stem the slide.

The yen approached 152 yen to the dollar, a level that many market observers said could trigger intervention.

“Central banks tend to intervene when they can surprise the market,” said Willcox.

“We’re all talking about it right now, so I think they’ll prefer to talk than to act, but obviously you never know.”

Willcox is spearheading a drive to turnaround trading and investment banking profit after joining Nomura in 2021 amid one of the most tumultuous periods in the firm’s history.

The wholesale division which he heads is undertaking a slew of steps to lift revenue, including bolstering the US private credit business, and accelerating cost cuts.

“We have incrementally improved the performance of all of those businesses quarter on each quarter for five quarters in a row,” he said.

“If you look at the headcount around my business, it’s roughly flat and looking forward into the next year, we expect that to be the same.”

 - Bloomberg