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Yen Soars Amid Stimulus Confusion and Doubts
The strength of the Japanese yen is the main development in the foreign exchange market today. It has gained nearly 1.5% as short-term participants grow skeptical of the kind of stimulus that had driven the yen around7.5% lower between July 8 and July 21's six-week high. The pendulum of market sentiment has swung wildly. One set of estimates had risen from JPY10 trillion to JPY30 trillion over that period. There was also the fascination with a version of helicopter money by which the Japanese government would issue non-marketable, perpetual, zero coupon bonds that the BOJ would buy through newly created credits. ... (full story)