From today’s Daily Pfennig:
I’ll tell you why I believe this is happening… So many Japanese investors held Aussie and kiwi (the high yielders) VS their base currency (yen)… And when Commodities started their free fall, these Japanese investors began to close out those positions, which meant they sold Aussie and kiwi, and bought yen…
Even the most recent Belle of the Ball, Brazilian real, has gotten caught up in the Commodities free fall… The real is the weakest it has been in several months this morning… And the other runner up Belle of the Ball, Mexican pesos, have gotten the snot knocked out of it by this dollar move…
So… Japanese yen, is the lone wolf bucking the dollar’s rally.
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