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Japan Spent 60 Billion US Dollars Defending The Yen!
Over a four-day period Japan is suspected to have carried out two interventions to support the yen at an estimated cost of $59 billion dollars. The first intervention came after the yen fell below 160 to the dollar for the first time in 34 years. The second intervention came a few days later after Jerome Powell announced that a rate hike was unlikely to be the Fed’s next interest-rate move. The simplest explanation for the declining yen is that it is entirely driven by Japanese interest rates being low relative to other developed markets. People take their money out of the yen which is yielding 0 and put it in ...