The bouncing yen

摘要

The sudden 14% plunge of the U.S. dollar against the yen in October caught the world by surprise. The yen had only recently been trading at 147 to the dollar and was apparently felling. Suddenly it turned right around and rose to 114. Just when nearly everyone was predicting that the yen would continue to fell against the dollar, it did the opposite. But, far from reflecting Japanese strength, the higher yen actually reflected Japanese weakness.