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Currency Markets Meltdown


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It's a Yen meltup, the greenback is little changed versus the other majors (with the exception of CHF). And the BOJ is nowhere to be seen...

Bloomberg's explanation:

The yen rose to a post-World War II high versus the dollar on speculation investors will buy the currency to fund rebuilding projects.

To me that sounds like complete fluff. Any bright minds with a better explanation for the crazy Yen buying going on?

EDIT: Stops being hit? Algos?

Edited by Greener Pastures
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I'd buy it now whilst its still in stock, lots of plants have shutdown and one article I saw in the Japan knockn on effects (mods might be worth merging with this thread) http://www.housepricecrash.co.uk/forum/index.php?showtopic=161089&view=findpost&p=2929327 is the prices will go up but supply will be delayed as well as chips which lets face it are in loads of things will have to be scrapped if in the middle of production.

I was using it as an example, I'm saying that goods imported from Japan will be costing more.

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From Zero Hedge:

The Day The Yen Carry Trade Died

While everyone is staring in disbelief at the USDJPY, the real carry action is in the high yielding-YEN pairs, i.e., the development, high growing countries. And it's a massacre: ZARJPY, NZDJPY, AUDJPY - all are plunging far more than the USD. This is nothing short of a complete carry trade unwind. The implications: the cheapest recurring source of funding for risk assets - the Yen carry trade, is over.

Cheap money was so, like, yesterday.

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So when people say this will force the BoE to delay IR rises, surely that's tota; BS as I can see the pound is down 4% against the Yen and then there are supply issues due to manufacturing difficulties in Japan.

My next Camera could cost 10% more within a month or 2?

Your next camera (if made in Japan, which these days is very unusual) will have a permanent glow...

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