Skip to content

Why did the Yen rally like that?

March 20, 2011
tags: , , ,

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.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: