The yen’s 5.5 percent drop against the dollar this month isn’t a prelude for further declines, said Deutsche Bank AG’s head of foreign-exchange strategy.
“We don’t think this is the beginning of yen weakness,” Bilal Hafeez said in an interview with Linzie Janis on Bloomberg Television’s “Countdown.” Deutsche Bank is the world’s biggest foreign-exchange trader.
The yen tumbled after the Bank of Japan, which has struggled for more than a decade against deflation, said on Feb. 14 it would aim for 1 percent annual gains in consumer prices and add 10 trillion yen ($124 billion) to the economy in asset purchases. The Bank of England is also pursuing a bond-buying plan known as quantitative easing.
“I don’t see the BOJ ramping up its QE over the course of this year and trying to create inflation,” Singapore-based Hafeez said. The yen weakness won’t be “sustained.”
The yen was little changed at 80.66 per dollar at 3:36 p.m. London time.