BREAKING: For the first time since 1990, the Japanese Yen weakens to 160 against the US Dollar.
In other words, the conversion rate for 1 US Dollar has gone from 130 Yen to 160 Yen, a massive change for a major currency.
This comes as the Bank of Japan kept interest rates near 0% even as their currency is sliding.
Last month, the Bank of Japan raised interest rates for the first time since 2007.
Still, their currency has lost nearly 20% of its purchasing power against the US Dollar over the last year.
What is happening in Japan?
Persistent weakness in the Japanese Yen be interpreted as a lasting inflationary signal.
Meanwhile, rate cuts are being priced out in the US and higher for longer is back.
It's going to be a bumpy road ahead.
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