0602 GMT - The fair value for the dollar appears to be around 150 yen based on interest rate differentials, says SMBC Nikko Securities economist Junichi Makino. With the pair currently trading near 160 yen, roughly 10 yen of that total is considered speculative, he notes. "Speculators will ultimately be forced to unwind their short-yen positions, and this process appears to have already begun," he says. "As speculators unwind their positions, the dollar-yen rate could move closer to its fair value of around 150." The dollar is trading at 159.25 yen.
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