3 ms·

Does this have anything to do with the Japanese Yen going up almost 13% relative to the USD in the last 30 days? https://i.imgur.com/vBKuj9n.png https://i.imgu

• physicsguy 2y ago
  The BoJ put interest rates up last week, which surprised everyone because they've been an outlier for a long time in having negative interest rates and then a 0% rate. That strengthened the currency even more. If the yen strengthens, then it means the goods sold by Japanese companies become more expensive for foreign buyers, so they'll sell less and earn less. Along with fears of the US economy starting to struggle (worse than expected job figures last week) it's a perfect storm. Gains up to this year have been good so for many firms wanting to de-risk they can still sell now and still make a profit.
• dash2 2y ago
  One story doing the rounds: the Japanese central bank was lending at roughly 0%. So the carry trade involved borrowing Yen, buying foreign currency, letting it appreciate (or investing it?) and paying back. Now the central bank has raised interest rates, so this trade is unwinding: the Yen is rising, and Japanese firms are selling their foreign investments to cover. (I hope I have this right.)