when i was a amature in trading in the occurrence time of Tsunami , i did a short sell trade on Japanese Yen ,but it had a sharp bullish trending movement . when it comes to Tsunami however it destroys infrastructure and as it turns out currency value should decrease but in reality it means central bank has to offer loans to companies in order to rebuild the country .so interest rate should be decreased and when ALL companies RUSH into borrowing currency from government ,that currency is safe heaven which means will not going any lower than current rate. so as a result Japanese Yen increased against USD.
Why Japanese Yen appreciate even under negative rate?
- Thread starter creditcard
- Start date
There is NO flight into JGBs and out of foreign assets. In fact, net purchases of foreign assets by the Japanese hit a record last week.No, I see it as a flight into JGB's and out of foreign assets. If one wanted high risk assets, there's better ways than Yen.
PS, to peruse and high risk don't go well together in the same sentence
That coincides with a drop in Yen, so I totally get that. You pick a week where Yen has dropped, because BOJ will start more easing and possibly even heli-money.
But not from mid 2015 until mid 2016, where a rise in Yen came because of uncertainty...
Hmm, ja jaaa... I stand corrected @Martinghoul
I think your earlier point of real interest rates is a good explanation too...
I think your earlier point of real interest rates is a good explanation too...
I think it was actually Maverick's point, if I am not mistaken... Credit where credit is due and all that jazz, y'know.Hmm, ja jaaa... I stand corrected @Martinghoul
I think your earlier point of real interest rates is a good explanation too...
Supposedly, 25% of Japanese corporates re-patriations occur in March.
A shift in US bias in February. A 125 USD/JPY level that may have not been a plus for the world.
Loss of faith in BOJ's tools available to to devalue cause a spike or two in the yen early in the year(Martingoul 2016).
Real rate differentials as Yen positve(Mav 2016).
An IMF study providing evidence capital flows do not/have not historically describe the Yen as a safe currency.
https://www.imf.org/external/pubs/ft/wp/2013/wp13228.pdf
I will bet that this months long trend is over and the Yen will range moving forward.
A shift in US bias in February. A 125 USD/JPY level that may have not been a plus for the world.
Loss of faith in BOJ's tools available to to devalue cause a spike or two in the yen early in the year(Martingoul 2016).
Real rate differentials as Yen positve(Mav 2016).
An IMF study providing evidence capital flows do not/have not historically describe the Yen as a safe currency.
https://www.imf.org/external/pubs/ft/wp/2013/wp13228.pdf
I will bet that this months long trend is over and the Yen will range moving forward.