“This yen depreciation is a reflection of the dollar appreciation vis-à-vis yen and market expect that depreciation of the yen would probably continue and some people expect that dollar-yen rate toward 130,” said Sakakibara, currently president at Institute for Indian Economic Studies.
“If it goes to 130 — and beyond 130 — that may create some problems,” he told CNBC’s “Asia Squawk Box” on Tuesday. The Bank of Japan “will be alarmed” if the dollar-yen rate goes beyond 130, he added.