“Billionaire investor George Soros and Bill Gross, who runs the world’s biggest bond fund, said the Bank of Japan (8301)’s plan to end deflation risks weakening 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 fell 18 percent in the past six months on speculation policy makers were planning to pump more money into the economy….”
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