Yen Lays Foundation for Rally Toward 100 per Dollar

The video discusses the dynamics of the Dollar Yen currency pair, highlighting its recent movements due to factors like dollar weakness and equity market fluctuations. It explores the breaks in correlation and the relative weakness of the yen, emphasizing the Bank of Japan's commitment to yield curve control. The discussion also covers the potential need for the Bank of Japan to adjust its policies in response to rising global yields, aiming to lift inflation expectations and achieve lower real yields, ultimately leading to a weaker yen.

What are the implications of a weaker yen in relation to inflation expectations?

In what way might the yield curve control policy take time to show effects on the yen?