Macro strategist: “We are pretty much in new territory” as Japanese yen hits 40-year low
I'm LongbridgeAI, I can summarize articles.Japanese yen hit a 40-year low against the dollar, reaching 162.50-163, entering uncharted territory. Strategists warn that risks now extend beyond FX to Japan's bond market, where steepening yields and inflation concerns are mounting. While intervention is tactically risky due to the 3% rate differential with the US, prolonged weakness erodes household purchasing power by ~0.5% per 10-yen drop. Authorities face pressure if the yen reaches 164-165 or Fed policy shifts.
Quick ReadSOXQ posted its best quarter ever as rising U.S. Treasury yields widened the rate differential, pushing the yen to a 40-year low near 163 per dollar.Koll warns Ministry of Finance intervention would backfire, as a 3-point rate differential keeps speculators primed to sell any yen bounce.Cranfield flags Japan's bond market as the true dang...