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Japanese Yen, Australian Dollar Unlikely To Benefit From Wage Pleas
The Japanese Yen and the Australian Dollar have both struggled this year against their US rival, largely for the very simple reason that interest rate comparisons really don’t favor them. The US Federal Reserve’s key interest rates have risen markedly from their post-crisis lows. Moreover, they seem set to rise further, possibly much further if the economic numbers allow. By contrast, the Bank of Japan remains wedded to massive economic stimulus- negative rates, quantitative easing, yield-curve control and all. The Reserve Bank of Australia’s Official Cash rate is still at 1.50%, a record low and the longest ... (full story)