EWJ - 3 Views On The Yen 'Collapse'

2024-04-30 06:00:00 ET

Summary

• The Japanese Yen has been undergoing quite the roller-coaster ride in recent weeks and is now down over 45% vs the USD since 2020.
• Despite the jump in inflation, the Bank of Japan left interest rates largely unchanged at 0% while every other Central Bank raised rates.
• Inflation has moderated from 4.3% to 2.7%, but with the current rate of inflation remaining stickier than expected, some are wondering if Japan is moving into a new era of higher inflation where ZIRP is no longer the right policy approach.

The Japanese Yen has been undergoing quite the roller-coaster ride in recent weeks and is now down over 45% vs the USD since 2020. With their large government debt load, many investors are wondering if this is the beginning of the end for the country, whose currency has appeared impervious to large debt loads. Here are three different views on the current situation and where I think this might all be headed....

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