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Why did the Yen rally like that?

March 20, 2011
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Some key points to remember the next time a disaster strikes. The Yen rallied so much because the Japanese government had to sell US treasuries to convert into yet so the could pay for the countless items needed to recover. Insurance companies had to do the same. As Japan has to import basically 100% of everything they need the government is going to do absolutely everything it can to keep their currency strong…It seems like bankers, tech co’s, everyone who could evacuated the island and this is going to be a serious blow to the japanese economy. ITs hard to believe Japan comes back to a top economy anytime soon.

This caused all sorts of issues in the currency markets, and an emergency g7 meeting took place. The result? Well, nothing. I fully expect the dollar to drop to new lows this coming week, and with another war started, this trend will continue.

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