Analysts: Soaring yen could undo Abenomics gains

Tokyo

AFTER several days of wild swings in currency and stock values, some markets showed a semblance of calm on Tuesday - but Tokyo stocks again plunged on fears that the already-sharp strengthening of the yen could speed up and derail the gains made by the Japanese economy in the last two years of Abenomics.

As Japanese finance minister Taro Aso called the yen's sudden climb "rough" and hinted at possible concerted foreign-exchange market intervention by advanced economies, a leading Japanese currency analyst warned that the yen could surge to 105 to the dollar if short-selling of the currency continued.

Meanwhile, one of prime minister Shinzo Abe's chief economic advisors, Yale economics professor Koichi Hamada, told The Business Times on Tueday that furthe…