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"Among the major currencies, the Yen's strength is the most worrying. Its close to 26% appreciation against the benchmark basket against a backdrop of weak overseas demand is pointing to very dire exports performance. Given Japan's dependence on exports, this is indeed worrying."
Dec 02 04:56 am
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All Comments by Steven Hansen »Monetary Conditions Remain Tight [View article]
and exactly how do you stop this from happening if the carry trade is unwinding? another point is that the bank of japan has been trying to keep the yen in a range around 105 for decades for export growth. from my view, the yen should be slightly under 100 for a fairer trade position with the usa,
the euro is a political currency. the ecb was tasked to prevent inflation - and they surely did that job well.