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