Analyst Known as Mad Dog Says Yen Can Rise to 100 Per Dollar
- Wakabayashi predicted currency's peaks in 1995 and 2011
- Japan's `quantitative easing worked only psychologically'
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The yen has already passed its low and may strengthen to 100 per dollar next year as the Bank of Japan’s unprecedented stimulus is failing to revive the economy, said Eishi Wakabayashi, a former trader who twice forecast the currency’s surge to record highs.
“The dollar is destined to decline against the yen because it’s been supported forcibly,” meaning the Japanese currency’s 2015 low of 125.86 was an excessive depreciation, Wakabayashi said in a Sept. 25 interview in Tokyo. “The quantitative easing worked only psychologically on asset prices, weakening the yen and lifting stocks while failing to boost inflation. That’s become clear and we will see the repercussion from these shock therapies.”