Don¡¯t be fooled by the yen¡¯s recent resilience against the dollar ¡ª it¡¯s dropping against the rest of its major peers at the fastest pace in six months.
Japan¡¯s currency slumped 3.3 percent over the past four weeks against a basket of nine developed-nation counterparts even as it traded in a range of just ?2 around 120 per dollar. It dropped the most against the pound, which was supported by the U.K. election result, and Norway¡¯s krone, which is rising in line with oil.
The yen¡¯s weakness over the past two years came as the Bank of Japan pursued policies including unprecedented bond purchases, seeking to revive an economy that has spent more than a decade battling deflation and a strong currency.
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