Show me teh moneyz!
Here we have the Bank of Japan intervening in the Yen to US Dollar exchange rate which hit an all time low (but I thought that was meant to be high?) since the Post-World War II. Apparently the bank did this by purchasing the Dollar on mass, with a major selloff of the Yen which helped the Yen to climb back up to 78 Yen, with the Nikei showing gains as well. But it seems like the efforts were futile as at the end of the day Nikkei went down, along with other major markets across Asia as a result of the massive sell-off taking place on Wall Street.
The effect of rise of the Yen against the dollar is apparent; much like any export reliant countries, a strong domestic currency would definitely hurt its economy. South Korea is currently facing similiar problems as well - both as a direct result from the collapse of Wall Street, shaken as a result form the loss of investor's confidence on America's & Europe's debt crisis. I'm so sleepy I feel like dying One thing which grabbed my attention is how the price for Gold & Swiss franc would normally increase during economic recessions. I can understand swapping your investments to Gold, one month low-yielding government bonds, but why the Swiss Franc? Even the Swiss Central Bank had to lower its domestic interest rates to cope with its the sharp increase which would have had adverse effects on its economy.
I should look into this.
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