If you bought the
dollar against the yen before recent elections there, you're probably feeling pretty good right now.
The appreciation of the Australian dollar
against the yen boosted returns until 2008 but the sharp depreciation since then has wiped out the positive carry.
As the global economy deteriorated in 2008, the collapse in virtually all asset prices led to the unwinding of the yen carry trade, leading to it surging as much as 29
percent against the yen in 2008, and 19 percent versus the US dollar by February 2009.
The dollar fell to a session
low against the yen on the retail sales data, while prices for longer - dated U.S. government bonds rose.
The yen's recovery was likely to be short - lived, and the dollar would
rise against the yen in the coming months, analysts said.
The dollar dropped
against the yen on Wednesday before recovering as investors bid up traditional safe - haven assets.
The dollar hit a 10 - day high
against the yen in overnight trading, but reversed that move, touching its session low after Dudley's remarks.
Most memorably, the Australian dollar depreciated 9 per cent against the US dollar, and 11 per
cent against the yen, in six hours of trading on the evening of the 8th of October.
It was around a six - year high
against the yen of 109.06 and a three - year peak of 0.78 euros.
Australia's mining stocks rose and the currency ended two days of
losses against the yen as Prime Minister Kevin Rudd was forced out by his deputy, sparking speculation the government may change a proposed mining tax.
During 2013, for example, the Canadian dollar declined against the euro, the pound and the Swiss franc, but
appreciated against the yen and Australian dollar (see chart above).
The U.S. dollar hit a five - month low
against the yen Tuesday morning as risk appetite grew among global investors.
The dollar also
weakened against the yen, sterling, Canadian dollar, Swedish krona and Swiss franc, which are the other index components this year.
«The market is also probably pretty long (dollar / yen) now,» Horchani said, adding that the dollar could face some downside
risk against the yen, if U.S. equities come under pressure on Thursday.
The euro hit a two - month low
against the yen soon after FDP leader Christian Lindner said on Sunday that his party was withdrawing from the talks as the three would - be partners could not find common ground on key issues.
In the currency markets, the differing messages of the world's major central banks on inflation and monetary policy prodded the dollar higher
against the yen ahead of a series of appearances by U.S. Federal Reserve officials this week.
The euro was
hurt against the yen by a German newspaper report saying Germany's regulator had ordered large banks to simulate a break - up.
Europe Roundup: Sterling steadies near 4 - month lows on soft construction PMI, dollar off
peaks against yen on U.S. - China tariff talk concerns, European shares slump - Thursday, May 3rd, 2018
This article from MarketWatch can vouch for this as it explains how the dollar has already fallen «
sharply against the yen and other currencies» as a result of this uncertainty.
-- Even though the Fed is not expecting a massive deterioration in US inflation expectations, as the Fed lowered projections for rate hikes, the tendency is for dollar
softness against the yen, which is poor for sentiment in Japan, particularly for equity sentiment.
In early June, however, the Australian dollar's fall accelerated, causing it to decline
even against the yen, which was itself falling sharply.
But Japan - based Rakuten operates and reports in yen (and the dollar has risen
steadily against the yen over the past few years, even with a recent slide), so dollar translations obscure the true proportions and are not the right way to look at it.
Last will be navigating the currency fluctuations as this will be a key theme this year if the U.S. dollar continues to
strengthen against the yen and euro, as expected.
Speculative investors mainly added dollar
shorts against the yen resulting in an increase in net long JPY positions to 39 percent of open interest.
108 yen fetches a dollar right now which is the lowest the dollar has been
against the yen for a long, long while.
The British Pound has lost 40 % of its
value against the Yen recently due to a «credit crunch» and this has hit Sony in the pocketbook, making them less money in their oversea ventures.
40 % of international Bitcoin trading has recently been reported to be
against yen ensuring a fuller kitty of the tax authorities by taxing cryptos.
In its native Japan, Bitflyer provides trading of bitcoin, bitcoin cash, and
ethereum against the yen, with 24 - hour BTC volume of around US $ 170 million.
TOKYO (Reuters)-- The dollar held
steady against the yen on Thursday after recovering against the safe - haven Japanese currency as stocks bounced back from a sell - off triggered by an escalating U.S.
In the past six months, the euro has gained about 8 percent against the dollar, 10 percent versus the British pound and soared 28
percent against the yen.
In the December quarter, the US dollar declined by 8 per cent against the euro, 7 per
cent against the yen and 5 per cent on a broad trade - weighted basis.
The Dollar held on to most of its
gains against the Yen and the Euro, while losing ground throughout the US session compared to the main risk - on currencies, which still diverge substantially from US equities.
He left a conference room where they were meeting to discuss placing a multimillion - dollar bet with the firm's money that the dollar would
rise against the yen.