I'm not sure of the ramifications, but the Japanese Yen is getting crushed, as they wish, against the Dollar and the Euro.

·         The Yen gaped down against the Dollar and the Euro seconds after Bernanke announced the beginning of taper.

·         This is exactly what Japan has wanted, apparently to stimulate exports, even though they are creating massive food and energy inflation for their citizens.

·         I don’t think it’s likely other exporting counties like China, South Korea, India, etc. are going to stand by idly on this issue.

·         It’s all about “Currency Wars” and the fight for exports.

·         Something to keep an eye on.

·         Below is the Yen to Dollar, and then the Yen to Euro. 5yr lows on both.

 

 

Randy Woodward
Managing Director, Fixed Income Capital Markets

One Burton Hills Blvd, Ste 225, Nashville, TN 37205

( Toll-Free 800.764.7621

6 Mobile 615.969.2682

Randy.Woodward@RaymondJames.com

 

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