Good headline in the Nikkei this morning: "Japan's exporters drive yen's roller coaster." I like it!

It attributes the sharp move in the yen yesterday to exporters buying yen against the USD.

From the piece:

  • Until last week, exporters had snapped up the yen as soon as the exchange rate reached the level of 104 per dollar
  • But the fresh cues from the Fed signal that the yen may depreciate further as the interest rate gap widens between Japan and the U.S.
  • So exporters waited beyond the 104-yen threshold
  • The tide quickly shifted around 10:45 a.m ... concerns over cheap crude oil and the slowdown in Chinese exports surfaced, dashing hopes that the yen would soften more
  • "Some exporters decided not to wait longer and turned to yen-buying," said Akira Moroga of Aozora Bank
  • Hedge funds followed suit

There you go