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Japan, China On Edge After Record US Dollar Surge Sparks "Explosive" Yen Plunge; China's Yuan Not Far Behind
Back in late March, when USDJPY was at 121, we warned that the "Yen Was At Risk Of "Explosive" Downward Spiral With Kuroda Trapped... And Why China May Soon Devalue", and since then the yen has... well, see for yourselves: chart In short, we were right. Having been in freefall for months, due to the "impossible dilemma" facing the BOJ which can't have i) a stable currency and ii) yield curve control at the same time, the BOJ has clearly picked an interest rate cap instead of intervening in the yen, and containing the record freefall in the Japanese currency which is set for its worst annual drop on record - the ... (full story)