Carlyle Says Worst of Yen Losses Over With Peak Dollar
- Thomas sees 50 basis point Fed hike, before smaller raises
- Yen may strengthen beyond 130 against dollar as Fed pauses
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The worst of the yen’s losses appears to be over, with the dollar likely peaking as the Federal Reserve slows its pace of rate hikes, according to Jason Thomas, head of global research at the Carlyle Group Inc.
The Fed is expected to raise interest rates by 50 basis points in December, and follow with a couple of smaller increases before pausing some time before the end of March, Thomas said in an interview in Tokyo on Thursday. The yen may then strengthen beyond 130 against the dollar and even approach 125 next year if projections for slower hikes become a widely-shared view, he said.