Yen Rally Sends Japan Stocks Plummeting, Sending Shockwaves Through Global Markets

Yen Rally Sends Japan Stocks Plummeting, Sending Shockwaves Through Global Markets


(Bloomberg) — Chaos erupted ‍in Japan’s financial markets on Monday as the​ yen surged against the⁣ dollar ⁤by approximately 13% from its​ low in July, ⁣pushing stocks into a bear market.​ The yields on⁢ Japan’s government bonds experienced their largest decline ‍in over twenty years.

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These unexpected and rapid movements caught investors off guard, impacting a wide range of market participants ​from individual ‍traders to large financial ‌institutions. ⁤The⁤ drop​ in bond yields led to significant losses in the shares ‌of‌ Japan’s three largest⁢ banks, ⁣erasing $85 billion in ⁢market value over ‌the⁣ past two trading days, as concerns grew about the⁤ impact on interest income.

The significant ‌strengthening of the yen, following the Bank of Japan’s interest rate hike on​ July 31, sent shockwaves through global markets, disrupting⁢ numerous investment strategies that relied on low-cost⁣ yen borrowing. It’s a disappointing turn of events…

2024-08-05 04:49:43
Source:⁣ finance.yahoo.com

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