The euro may lose 20 percent or more against the dollar and fall below ¥100 as concern over Europe's debt crisis mounts, according to Eisuke Sakakibara, the former Finance Ministry official known as "Mr. Yen."
European finance ministers have agreed on a rescue fund backed by 440 billion euro ($524 billion) in an effort to halt the spread of the credit woes afflicting Greece. That accord followed the announcement on May 2 of aid for Greece.
"They've infused a substantial amount of money, but whether Greece will be able to comply with the conditions is still in doubt," Sakakibara, a professor at Aoyama Gakuin University in Tokyo, said in an interview Tuesday. "The market doesn't believe it."