HomeLatest'Mr. Yen' says Japan’s forex could fall to 160 and past

‘Mr. Yen’ says Japan’s forex could fall to 160 and past

TOKYO, Jul 07 (Bloomberg) –
The yen could fall via the more-than three-decade low it reached final yr amid Japan’s widening financial coverage divergence with the US, in response to Eisuke Sakakibara.

Known as “Mr. Yen” for his capability to affect the forex when he was Japan’s vice finance minister from 1997-1999, Sakakibara stated the yen could weaken greater than 10% from present ranges because the Bank of Japan clings to ultra-easy coverage whereas the Federal Reserve raises rates of interest to tame inflation. The yen strengthened to about 143.6 per dollar on Friday in Tokyo.

“It might even go beyond 160, maybe next year,” the present president of the Institute for Indian Economic Studies stated in Tokyo. At across the 160 per dollar degree, authorities “may be tempted to intervene to strengthen the yen.”

Shorting Japan’s forex has made a comeback amongst traders as falling Treasuries spur traders to promote the yen in favor of the higher-yielding dollar. The yen is likely one of the worst-performing Group-of-10 currencies this yr after tumbling virtually 9% towards the dollar, jolting officers into resuming verbal intervention to sluggish the yen’s descent and warning of firmer motion.
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