The dollar may extend its decline to 91 yen over the next two weeks, as equity and bond markets are likely to slide on concern about the deterioration of U.S. government finances, Mitsubishi UFJ Trust & Banking Corp. said. Rising Treasury yields would push up mortgage rates, “dampening the real economy and crippling policy effectiveness,” said Hideaki Inoue, chief manager of foreign- exchange and financial products trading in Tokyo at Mitsubishi UFJ. That would have the potential to create a “triple whammy” of plunging equities, stock and currency markets, he said The dollar dropped versus all of the 16 most-traded currencies this week. It touched $1.3971 per euro today, the lowest since Jan. 2, and fell to 93.87 yen, the weakest since March 19. “The dollar may test the March low of 93.54 yen” and a break below that level might see the U.S. currency plunge toward 91 yen, a level last seen on Feb. 13, Inoue said. “The market may test 91 yen next week and the week after next, depending on yields and stocks,” he said.

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