Yen's Slump to Past 160 Is Function of Fundamentals, BofA Says

Claudio Piron, co-head of Asia foreign exchange and rates strategy at BofA Securities, says the weakness in the Japanese yen, which dropped as much as 1.2% to 160.17 per dollar on Monday before the move pared, says is "a function of fundamentals in a certain sense." He speaks on "Bloomberg Markets: Asia."
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[@method341]

Wait, none of these guys predicted the yen would fall so much and now it's all because of 'fundamentals'? What a waste of time....

[@AH-fm7rj]

😆

[@ghostv6416]

They sure know but don‘t want to tell you.

[@johnmerlino7011]

Japan's exports should grow with a lower currency valuation. Japan's stock market index valuations are rising but from inflation being reflected in stock valuations but increased exports may help in the future.

[@Buppasiri1]

If you can't raise rates maybe you need to sell assets... UST?

[@ssuwandi3240]

They have dropped the ETF buying. Drawers are still full

[@ikea5619]

It is currently a period for driving out foreign capital from within Japan and nurturing export companies. Once structural reforms are completed, Japan will recover beyond its previous state. Since Japan holds the world’s largest net foreign assets, there is no risk of bankruptcy due to a weaker yen.

[@stritsheeterphajeet156]

Sadly the only thing the j@p goblins export now is p😍rnography

[@prolific1518]

Well they clearly stepped in

[@btrue2day]

It simply means that Japan has to reevaluate its financial relationship with the US, which is like a parasite

[@danyoyoh]

Yep.

[@KittyKittyCat-vf8zd]

Not when you have 100,000 American occupation troops on your soil and an anti-corruption agency in Tokyo managing all of the Japanese politicians.

[@ctrl-shift-run8681]

I wonder how the Japanese in non-exporting roles must be feeling. In 2011 the yen was at 76 and in 13 years, they've lost half the value of their money vs the US at least. Even worse if you compare it with the other safe haven currency, the CHF.

[@araara4746]

What do you expect from Japan, if just to save Yen, Kishida has to go to Washington to ask for permission?

[@KittyKittyCat-vf8zd]

@@araara4746 Beg for permission.

[@BULLSHXTYT]

155 now

[@KittyKittyCat-vf8zd]

Japanese gov has promised to intervene. But how long can Japanese gov stop the tide? This is another shorting opportunity.

[@toybags]

EV demand/outlook plummeting; how do you compete with a Chinese made EV(as low as $11k). So many Tesla owners are upside down on their cars…. Not easy to shake off demand/ pricing downward spiral. A cheaper TESLA EV would hurt margins more. Conversely, try to buy a Toyota hybrid today-u can’t…all sold out.

[@soowo5942]

9700 USD

[@KittyKittyCat-vf8zd]

US lacks the infrastructure to support EV. That's the issue. China has about 10 million EV charging stations. The rest of the world has about 12000. That's your problem.

[@damin9913]

I said this befor Yen would never beat the US dollar everybody love American money over Japanese Yen

[@bullbutter9699]

Need to get the Brits out of Economics.

[@cwaddle]

Japan is getting so cheap US could buy the country

[@KittyKittyCat-vf8zd]

It will get cheaper. The economic collapse of Japan has just begun. IT got a long way to go. Come back in 2028. The next buying opportunity.

[@cwaddle]

@@KittyKittyCat-vf8zd collapse? Which earth are you you living in?

[@omonkkonen6676]

Japan will stop buying US dept papers. Who is in trouble? Japan just become good place to manufacture stuff…

[@turtlesoup8134]

Why buy Japan if you already own it?

[@araara4746]

@@omonkkonen6676 Japan will not be a place for manufacturing, because just like the US and Europe, Japan will experience higher cost constraints than China.

[@arcturusme2630]

It just means that Chinese investors are buying more US assets, because Chinese are in a long term recession.

[@mariajiao4855]

I am not sure which basement you are living in. China is still rising and will double it's gdp in the next 15-20 years

[@KittyKittyCat-vf8zd]

What? China is leading the way in global de-dollarization! China has been dumping USD assets and buy Gold for 4 years now! China is using BRICS to create a BRICS currency to replace USD and a new payment system to replace SWIFT. The last thing China would do now is buying US assets.

[@KittyKittyCat-vf8zd]

And China GDP is growing at 5.4% while US GDP is growing at 1.4%. And Chinese inflation rate is only 1.0%. US inflation rate is 3.5%. US has a -2.1% real growth. Who is in recession again? LOL

[@KittyKittyCat-vf8zd]

@@mariajiao4855 China plans to surpass US GDP in 2030 and surpass US per capita income by 2050. China is well on her way.

[@ssuwandi3240]

I doubt they're piling on shiny metal. More like Treasury's contraction such as Vanguard is likely selling

[@pohmoh3590]

What happens when a country blindly follows US 😂

[@KittyKittyCat-vf8zd]

Japan is an American vassal state. It does not get to choose.