The story goes that on January 5, the euro and the yen lost to the U.S. dollar because Barack Obama's proposed fiscal stimulus package may help the U.S. economy. That same day, the Mexican peso gained -- because an improved U.S. economy should boost Mexican exports. But wouldn't a better U.S. economy also boost exports from the EU and Japan? So why didn't the euro and yen gain with the peso? Hmm...
Right now, the Japanese Yen is nearing a 13-year high against the U.S. Dollar and headlines abound of the great "unwinding" of the Yen Carry Trade. If you think the Bank of Japan is behind the yen's rally, think again...
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