The yen may extend its slide to 90 per dollar by the first quarter of next year or sooner, according to Greg Gibbs, a senior currency strategist at the Royal Bank of Scotland Group Plc.
Gibbs, based in Singapore, spoke today with Susan Li on Bloomberg Television’s “First Up.”
On the Yen’s outlook:
“This is the biggest story in foreign exchange at the moment. The yen’s in the process of a major sentiment turn here.”
“How high can it go? Well I think we can really get to 90 before we really need to ask that question because the economic conditions as they are now aren’t really a restraint on dollar-yen going higher.”
“By Q1 next year is easily achievable, if not sooner.”
On currency strategy:
“The best bet is to sell yen. I like dollar-yen higher, I’m not as bearish to the dollar as many are. I think the dollar is basically getting close to the point to where it’s had its biggest negative move on quantitative measures from the Fed.”