Sakakibara Says Yen May Rise to 80, Endangering Japan Recovery

(Bloomberg) -- Eisuke Sakakibara, formerly Japan’s top currency official, said the yen may climb to 80 per dollar in the first half of next year, hampering the economic recovery. “A strong yen would cause stock losses and enhance deflation, which may cause Japan’s economy to slip into a double-dip recession,” Sakakibara said at an event today in Tokyo hosted by Citigroup Global Markets Japan Inc. Japan’s government would find it difficult to intervene effectively to weaken the yen, said Sakakibara, who became known as “Mr. Yen” during his 1997-1999 tenure at the Ministry of Finance for his efforts to influence the yen rate through verbal and actual intervention in the currency markets.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajiS0a90D8vE