12:23 AM
admin
By Bei Hu & Wes Goodman
Billionaire investor George Soros and Bill Gross, who runs the world’s biggest bond fund, warned the Bank of Japan (8301)’s plan to end deflation risks creating a rout in the yen.
“If the yen starts to fall, which it has done, and people in Japan realize that it’s liable to continue and want to put their money abroad, then the fall may become like an avalanche,” Soros said today in an interview on CNBC.
The currency will have to depreciate “much more” for BOJ Governor Haruhiko Kuroda to reach his inflation target of 2 percent, Gross said yesterday.
Soros and Gross chimed in after Kuroda announced plans yesterday to double the BOJ’s monthly bond purchases to about 7.5 trillion yen ($77.8 billion) as it seeks to achieve 2 percent annual inflation in 2 years. Japan’s currency has already fallen 18 percent in the past six months on speculation policy makers were planning to pump more money into the economy.
Only the Malawian and Venezuelan currencies performed worse, according to data compiled by Bloomberg.
The yen was little changed against the dollar today at 96.36 as of 2:02 p.m. in Tokyo. It earlier weakened to 97.19, a level not seen since August 2009.
The BOJ is ready to do more if needed, Kuroda told reporters in Tokyo yesterday.
Unstoppable Momentum?
“If what they’re doing gets something started, they may not be able to stop it,” Soros said.
Group of Seven nations may press Japan to control the pace of the yen’s decline as they seek to temper gains in their own currencies, Gross said. A stronger currency makes a nation’s good more expensive to overseas buyers.
“Much more depreciation of the yen has to take place in order to get even close to 2 percent” inflation, Gross said yesterday on Bloomberg Television’s “Street Smart” with Adam Johnson and Sara Eisen. “I’m not sure that other G-7 countries are willing to permit that. They’ve to got to control it to some extent,” said Gross, who is based in Newport Beach, California.
Gross manages the $289 billion Total Return Fund. (PTTRX) Pimco is a unit Munich-based insurer Allianz SE. (ALV)
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.
source
please give me comments thanks
Billionaire investor George Soros and Bill Gross, who runs the world’s biggest bond fund, warned the Bank of Japan (8301)’s plan to end deflation risks creating a rout in the yen.
“If the yen starts to fall, which it has done, and people in Japan realize that it’s liable to continue and want to put their money abroad, then the fall may become like an avalanche,” Soros said today in an interview on CNBC.
The currency will have to depreciate “much more” for BOJ Governor Haruhiko Kuroda to reach his inflation target of 2 percent, Gross said yesterday.
Soros and Gross chimed in after Kuroda announced plans yesterday to double the BOJ’s monthly bond purchases to about 7.5 trillion yen ($77.8 billion) as it seeks to achieve 2 percent annual inflation in 2 years. Japan’s currency has already fallen 18 percent in the past six months on speculation policy makers were planning to pump more money into the economy.
Only the Malawian and Venezuelan currencies performed worse, according to data compiled by Bloomberg.
The yen was little changed against the dollar today at 96.36 as of 2:02 p.m. in Tokyo. It earlier weakened to 97.19, a level not seen since August 2009.
The BOJ is ready to do more if needed, Kuroda told reporters in Tokyo yesterday.
Unstoppable Momentum?
“If what they’re doing gets something started, they may not be able to stop it,” Soros said.
Group of Seven nations may press Japan to control the pace of the yen’s decline as they seek to temper gains in their own currencies, Gross said. A stronger currency makes a nation’s good more expensive to overseas buyers.
“Much more depreciation of the yen has to take place in order to get even close to 2 percent” inflation, Gross said yesterday on Bloomberg Television’s “Street Smart” with Adam Johnson and Sara Eisen. “I’m not sure that other G-7 countries are willing to permit that. They’ve to got to control it to some extent,” said Gross, who is based in Newport Beach, California.
Gross manages the $289 billion Total Return Fund. (PTTRX) Pimco is a unit Munich-based insurer Allianz SE. (ALV)
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.
source
please give me comments thanks
0 comments:
Post a Comment