Yen strength cannot last - Franklin's Hasenstab

Michael Hasenstab, Franklin Templeton's co-director of international bonds, is shorting the yen on expectations it will weaken against the US dollar as the Japanese authorities prepare to print money.

The yen reached fresh 15-year highs today against the dollar, causing the Nikkei to fall 2.18%. Japan's currency has risen 11% over this year versus the dollar to reach a new high of yen83.6 to $1. Hasenstab highlights yen strength is a major problem for exporters, which he says are presently "the only source of strength in the Japanese economy". However, he expects the yen to soften versus other Asian currencies, according to an interview with Reuters. "With the yen under 90 per dollar, exporters will be under extreme pressure," he says. "With deflation still a problem in Japan...