What has dropped the yen to the worst levels since May
Bloomberg lays out eight factors:
- Dollar demand seen from global central banks especially in 2-year and 5-year notes
- Japanese moves ahead of year end
- Short covering and a run on stops
- A surge in yen options trading on the break of 110.00 and related to coronavirus fears
- An unwind of shorts in USD/JPY and EUR/JPY
- Chinese measure to support parts of its economy reduced safe-haven demand
- Technical momentum
- Worries about a recession in Japan
Many of these overlap but that’s the buzz.