Yen is one of the most traded currencies in the world, especially due to its low interest rate since the Yen is used in carry trades. Recently the Bank of Japan has expanded their purchase of Yen, hoping to overturn the deflation tide to inflation. Doubling this money supply is devaluing the Yen, boosting exports; but, increasing prices of imports at the same time, especially for commodities.
One of the biggest winners of the ‘Trump Bump’ across markets was Japan. After the BoJ spent more than three years weakening the Yen as part of ‘Abenomics,’