Chris Young of the IHT wrote about the situation in Japan where still very low interest rates and wide interest rate gaps with other major economies is resulting in weakness in the yen.
So far in August (as of last Friday) the yen has weakened as follows against these currencies:
$NZ -5.0% $CAN -3.2% £ -3.2% R$ -3.2% Mex$ -2.3% $US -2.2% € -2.1%
In terms of rate spreads, Japan's 0.25% rate is considerably lower than:
ECB 3.0% Canada 4.25% US 5.25% Mexico 7.0% Brazil 14.75%
For the investor in Japanese equities a weaker yen brings mixed results since it results in underperformance of ADRs, ETFs, and mutual funds versus ordinary shares, but at the same time it actually helps ordinary shares because of investor sentiment and eventually if/when firms repatriate profits (and report foreign exchange profits in earnings releases). Long investors will eventually benefit when the BoJ resumes its rate hikes and central banks around the world slow or end theirs'.