Top Yen Forecaster Sees Currency Sliding to Lowest Since 1986

• Yen may test 165 per dollar level this year, RBC’s Tan says
• Traders have been selling yen on interest-rate gap with US

The yen may weaken to 165 per dollar despite potential efforts from Japan to halt its decline, according to the currency’s top forecaster.

Alvin Tan, head of Asia FX strategy at RBC Capital Markets, sees risk of the yen slumping to that level, which was last seen in 1986. The currency has become a victim of Japan’s yawning interest-rate gap with the US, and even speculation of authorities intervening to support the yen has been insufficient to fully quell the bearishness.