Japan’s currency, the yen, is the third most commonly used currency in the world, behind the U.S. dollar and euro. For decades, it has been seen as the proxy for Asia. Although China’s currency, the yuan, is rapidly growing in importance, its managed status and general lack of flexibility means the Japanese yen is still the preferable Asian reserve currency over the yuan. It is also the fourth most popular reserve currency behind the U.S. dollar, euro and sterling. This is very important because when there is political or economic uncertainty in Asia, investors usually express their views through the Japanese Yen. So ... (full story)