Dollar-Yen a Crowded Trade, But Can Move Higher: Citi

The video discusses the impact of US yields on the dollar-yen exchange rate, highlighting the correlation between them. It examines the current monetary policy paths of Japan and the US, noting the differences in rhetoric from Japanese authorities. The potential for foreign exchange intervention is considered, with historical context provided on past interventions.

What is the primary factor driving the recent movements in the dollar-yen exchange rate?

• Chinese market trends

• European Central Bank decisions

• US yield spreads

• Japanese economic policies

Why might the dollar-yen exchange rate go higher according to the discussion?

• Because of a crowded trade

• Due to lower US yields

• Due to Japanese intervention

• On the back of higher US yields

What is the current stance of the Japanese government regarding foreign exchange intervention?

• They are actively intervening

• They are considering intervention at current levels

• They have never intervened in the past

• They are not at levels prompting intervention

What historical event is mentioned regarding Japanese currency intervention?

• Intervention in the 1990s

• Intervention more than three decades ago

• Intervention last year

• Intervention during the 2008 financial crisis

What was necessary for the last successful Japanese currency intervention?

• No assistance was needed

• Assistance from China

• Assistance from the US

• Assistance from the European Union