-
CBA: The simple reason why negative interest rates aren't weakening the yen and euro
Despite the Bank of Japan adopting a negative interest rate policy and hints from the European Central Bank that it may cut interest rates even deeper into negative territory as soon as next month, it’s done very little to weaken the yen and euro against the US dollar in recent weeks. Indeed, the US dollar index, a broad measure on US dollar strength that has the euro and yen as its largest weightings, closed at a four-month low overnight, extending its decline from Dec 2 last year to 4.5%. While diminished expectations for further US rate hikes this year contributed to the strength in the yen and euro, lowering ... (full story)