David Rea, from Capital Economics, said attempts to weaken the yen are doomed to failure as Japan’s safe-haven role makes it a magnet for funds fleeing the unresolved crises in the rest of the world. He expects the yen to strengthen from 78 yen to the dollar to 70 yen by late next year. It was at 125 yen five years ago. China’s yuan is pegged to the dollar so Japan has suffered a dramatic loss of competitiveness against China.