The Yen is very volatile today as it is under cross currents. The earthquake has rattled the country and its markets, causing sharp stock losses, and will cause very speed production declines. Other countries have seen their currencies drop after such events. The Yen however, has been very volatile, in part due to the Bank's intervention, in part due to expected repatriation of capitals, some to pay for the damages.
Besides the record amount of cash poured into the financial system, the Bank of Japan also doubled the size of its asset-purchase plan.
"Policy makers said they were concerned corporate and household sentiment will worsen, with production set to decline in the aftermath of the temblor and an ensuing tsunami".
"Japan’s currency, which initially climbed against the dollar then retreated in the wake of the central bank’s cash injections, stayed lower after the policy decision. It traded at 81.95 as of 6:04 p.m. in Tokyo. Stocks stayed lower, with the Nikkei 225 Stock Average closing down 6.2 percent minutes following the announcement".
Plants Shut Down
Sony Corp., Japan’s biggest exporter of consumer electronics, halting operation at 10 factories and two research centers.
Toyota, the world’s largest automaker, closed all 12 factories in Japan through March 16.
We track currency ETFs live here and country ETFs here.
Monday, March 14, 2011
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