The Puzzling Selling Trend in the Yen
I've been watching the selloff in the yen for the past month and a half, and I continue to scratch my head in wonderment at just what is behind this. Sure, I know that Japan elected an old "new" prime minister, Shinzo Abe, and he has been all bluster about what he is going to do to stimulate Japan's economy. I get it that speculators sold the yen in anticipation of Abe's return to power, but the currency's severe slide since then has me thoroughly confused.
Since the election, Abe has been doing a lot of talking, but that's about it. The proposed stimulus that he has been talking about still has yet to happen. Moreover, the Bank of Japan, the institution that yen bears have been hanging their hat on, recently rebuffed Abe's demands for more asset purchases, saying that it would do so only in 2014. That also assumes that asset purchases have any impact on the yen at all, which they don't....418 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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