The Impact of Yen/US$ FX on Japan ADRs, ETFs and Funds (EWJ, ITF, VPL, HMC, SNE)

Includes: EWJ, HMC, JPXN, SNE, VPL
by: Steven Towns

Just until a month ago the dollar was moving towards a 3-year high against the yen and echoes of currency manipulation could be heard out of Detroit and Washington. Yesterday however in a major reversal, the yen continued its recent rebound in a big way by moving 1.61 points to Y114.50/US$1 while the Nikkei 225 (ETF tracking the N225 is ticker: EWJ) and TOPIX Index (ETF tracking a sub-index of TOPIX is ticker: ITF) moved sharply downward. The main reason for the yen’s strength is the Fed’s language that it will no longer be “accommodative,