Kuroda U-Turn & PBOC Devaluation Send Yen, Yuan Tumbling In Early Asia Trading

Kuroda U-Turn & PBOC Devaluation Send Yen, Yuan Tumbling In Early Asia Trading

Tyler Durden’s pictureSubmitted by Tyler Durden on 03/15/2016 22:01 -0400
http://www.zerohedge.com/news/2016-03-15/kuroda-u-turn-pboc-devaluation-send-yen-yuan-tumbling-early-asia-trading

A 3rd consecutive day of weaker Yuan fix has sent Offshore Yuan tumbling again back to 1-week lows. However, it is Kuroda’s apparent U-turn on NIRP (dropping further rate cuts possible from the statement but now commenting that anything is possible) has sent Yen down hard (after strength during the US day session) almost back to pre-BOJ levels.

Yuan short-squeeze is over… for now

Bear in mind that while policymakers will crow about the apparent stability in Yuan (against the USD), based on the RMB Basket, Yuan has been notably weakening all year…

Kuroda jawbones JPY back lower…

*KURODA: THEORETICALLY QUITE SOME ROOM TO CUT NEG. RATE FURTHER
*KURODA: THEORETICALLY, IS ROOM TO CUT RATE TO MINUS 0.5%
*KURODA: EFFECT OF NEG. RATE TO TAKE QUITE SOME TIME TO APPEAR

And so it did…

Bring it on Janet…

Leave a Reply