…and that must mean the yen is weakening. Interesting observation from Nomura’s foreign exchange analysts:
The secret behind the yen’s outperformance relative to US rates is likely to be found in Tokyo. By breaking down the price action in the different time zones (Tokyo, London, New York) we show that yen strength during Tokyo trading hours has been important in overall trading dynamics. Over the last 3-4 months, the cumulative yen gain during Tokyo trading hours stands at 4%. This compares to a cumulative loss of 4.5% during London hours, and a cumulative loss of 2% during New York hours over the same period…
Which tells you that Japanese investors have perhaps been surprisingly uninterested in foreign assets recently, Nomura say.
That, or…
a) if the Bank of Japan wades into the market again, it’ll be Tokyo time
b) Mrs Watanabe loves her beauty sleep, eh?
Related link:
Will nothing deter Mrs Watanabe? - FT Alphaville