The Japanese yen has finally started to succumb to negative fundamental pressures, as the currency has continued to lose its correlation with the stock markets. This has left many wondering if the Japanese yen has lost its safe haven status, as Japan faces a deepening recession amidst dismal domestic demand and plunging foreign demand, as exports fell a record 45.7 percent in January from a year earlier. However, the decline in the currency will serve as good news for Japanese officials since the yen’s prior appreciation was one of the big reasons why exports contracted so sharply, along with the global economic slowdown.
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