The Rising Yen
The U.S. dollar has depreciated 18% against the Japanese yen since August 1998. More than half of the decline occurred in late October, as hedge funds and other international investors scrambled to stop losses on short yen positions. Investors’ swift actions, while increasing market volatility, were a response to emerging news of changes in Japanese fiscal policy.
Suggested citation: "The Rising Yen," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-03, pp. 18, 03.01.1999.