“Classical indicators suggest it is oversold,” O’Neill said in an interview on “Bloomberg Surveillance” from London. The Bank of Japan “has got to show its going to take this 2% inflation target seriously. Rather than just a goal, it has to be a target,” he said.
The yen has slumped 16% in the past six months, the biggest decline among the 10 developed-market currencies tracked by Bloomberg Correlation Weighted Indexes, as Abe was swept to power with a pledge to weaken the currency. The dollar dropped 4.6% and the euro gained 4.8%.
The greenback rose versus most major peers. Retail sales in the U.S. increased more than projected in December, gaining 0.5% after a revised 0.4% increase in November, Commerce Department figures showed today. The median forecast in a Bloomberg News survey was for a 0.2% rise. A report by the Federal Reserve Bank of New York showed manufacturing in the New York region shrank in January for a sixth straight month.