Cheapass yen to carry on

Over the last few days the correlation between the weak yen vis-a-vis the Aussie Dollar (AUDJPY.FX) has been almost tighter than the correlation between the ASX200 index and the Share Price Index futures. The result has seen the SPI and ASX200 soar ever higher into new record territory, on top of an almost vertical run for the last 6 months, all on the back of the cheapass yen.

And the IMF is apparently OK with that. The world must be a better place for the printing machinery of the BoJ. Wakarimasen.

David McMahon is reporting for Reuters that "... the International Monetary Fund said it saw no need for "heavy-handed" action on the yen carry trade.
"The yen also hit decade lows against the Australian and New Zealand dollars after the IMF comments, which were taken as a green light to continue borrowing in yen to fund purchases of higher-yielding currencies."