Yen Is 'Significantly Cheap' on Trade-Weighted Basis, Barclays Says

The transcript discusses trade tensions and the role of the PBOC in currency fixing, highlighting mixed signals in the market. It explores the risks of currency depreciation, such as capital outflow, and suggests that monetary easing in China should focus on liquidity. The potential for a currency war is considered, with a focus on the yen's strong performance against other G10 currencies, attributed to its undervaluation and the global economic environment.

What is one of the key risks associated with China's weaker currency strategy?

• Stronger trade relations

• Increased foreign investment

• Higher inflation rates

• Capital outflow

What method is suggested as a better way to deliver monetary easing in China?

• Reducing government spending

• Raising taxes

• Cutting banks' reserve requirement ratios

• Increasing interest rates

Which currency is noted for outperforming other G10 currencies in the current year?

• Pound Sterling

• Australian Dollar

• Euro

• Yen

What is one reason for the yen's potential appreciation against the dollar?

• High inflation in Japan

• Undervaluation of the yen

• Strong economic growth in Europe

• Increased oil prices

What global environment is contributing to the yen's performance?

• High-risk investment climate

• Cautious or risk-off environment

• Rapid economic expansion

• Stable geopolitical conditions