内容导读：Someofthecraziestmovesinglobalfinancialmarketsarerevolvingaroundtheyen.TheyenhasdepreciatedsomuchBlac...……
Some of the craziest moves in global financial markets are revolving around the yen.
The yen has depreciated so muchBlackjackvideopokerSo much so that at some point on Monday, 160 yen to the dollar. A few years ago, the exchange rate of the yen against the dollar was close to 100 yen. The yen is so weak that it returns toBlackjackvideopokerIt was where it was in 1990, shortly after Japan's famous "bubble economy" burst.
The dollar hit 160 yen at one point in New York trading and quickly fell back to 156 yen by midday on the east coast on Monday. Such sudden fluctuations may occur in the foreign exchange market, which is notoriously volatile. The closure of the Japanese stock market may also be one of the reasons for trading volatility. But the speed and extent of the yen's volatility has sparked speculation about whether Japanese officials are taking steps to support the yen.
The yen has long been under pressure as the Bank of Japan (Bank of Japan) keeps interest rates extremely low to encourage more inflation in the Japanese economy. It was not until last month that it ended its policy of keeping benchmark interest rates below zero.
The Bank of Japan (Bank of Japan) made its latest interest rate decision on Friday, leaving rates unchanged. This has contributed to the recent weakness of the yen. Bank of America strategists said in a report by Bank of America Global Research (BofA Global Research) that the market may have been responding to the recent commitment of the Bank of Japan (Bank of Japan) not to raise interest rates further, and the yen is likely to remain under pressure in the third quarter of this year.
This is partly because the US economy has been solid. With inflation and the economy still higher than expected, the Fed is increasingly expected to keep its main interest rate high for some time. This keeps Treasury yields high, putting upward pressure on the dollar.
The weak yen is a good thing for American tourists to Japan, which means they can buy more yen for every dollar they spend. This is also a good thing for Japanese exporters, as it increases the value of their sales in dollars when translated into yen.
But keeping the yen weak also carries risks. A core problem is that it could cause Japan's inflation to eventually exceed its target and damage the world's third-largest economy. Japan, for example, imports almost all its energy, and oil is traded in dollars rather than yen.