BOJ to Drive Dollar-Yen by Year's End, Says Nomura's Rochester

The transcript discusses the impact of equity market sell-offs on currency strength, focusing on the yen and dollar. It analyzes historical currency trends, including the effects of urbanomics and Trump flation trades. The discussion covers monetary policy changes, such as stealth tapering and QE program adjustments, and their market impact. It also examines market corrections, risk correlation, and the influence of interest rate hikes and term premium on the market.

What is one potential effect of a sell-off in the equity market on the yen?

• The yen strengthens as a safe haven currency.

• The yen weakens due to increased risk appetite.

• The yen depreciates due to higher US inflation.

• The yen remains unaffected.

What is the impact of the Bank of Japan's stealth tapering on its QE program?

• It increases the amount of purchases.

• It has no effect on the QE program.

• It leads to more aggressive monetary easing.

• It reduces the amount of purchases.

How did the recent bear market correction in equities affect the dollar-yen exchange rate?

• It had no impact on the exchange rate.

• It resulted in a stronger dollar.

• It caused the dollar-yen rate to rise.

• It led to a lower dollar-yen rate.

What could lead to a boost in the dollar-yen exchange rate according to the market?

• No change in Fed policy.

• Five or six Fed rate hikes.

• A decrease in US inflation.

• Three or four Fed rate hikes.

What is the effect of term premium on risk markets?

• It leads to increased market stability.

• It has no impact on risk markets.

• It is detrimental to risk markets.

• It is beneficial for risk markets.