Mr. Yen Sees Rally Toward 90 per Dollar Spurring Intervention
- Japan’s currency could break 100 this month, Sakakibara says
- Helicopter money won’t weaken yen to 125, ex-MOF official says
Sakakibara Sees Yen Slowly Appreciating to 100 per Dollar
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Former Japanese vice finance minister Eisuke Sakakibara said the yen could strengthen toward 90 per dollar as soon as this month and provoke officials to sell the currency to weaken it.
Japan’s currency will appreciate gradually toward 100 per dollar, but gains are likely to accelerate beyond that level, said the 75-year-old, who was dubbed “Mr. Yen” for his ability to influence the exchange rate in the 1990s. Sakakibara sees the “intervention zone” lying between 90-95, when dollar weakness should worry the U.S. Treasury Department enough to agree to yen selling by the Finance Ministry, which he sees as a precondition for the intervention to be effective.