Yen May Weaken to 130 Within 2 Years, FX Concepts’ Taylor Says
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The yen will decline to 130 per dollar within two years as foreign investment in Japanese bonds wanes amid a climbing rate of inflation, according to John Taylor of FX Concepts LLC.
It is unclear what Bank of Japan policies will be once the country achieves its current goal of 2 percent inflation, said Taylor, the founder and chief executive officer of currency-hedge fund FX Concepts LLC. European and American investors will be hesitant to purchase 10-year Japanese government bonds at that point, leaving the country to rely on domestic demand, he said. The last time the yen traded at 130 was 2002.