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To: RR who wrote (17448)5/3/2000 10:38:00 PM
From: Jim Willie CB  Respond to of 35685
 
RR5, funny how Japanese currency is the oddball

strong US$ brings about a weaker JYen to some minor degree
that currency relationship is more a function of FedReserve and BankofJapan cooperative intervention, perceived economic strength, and trends exploited by huge institutional traders

but the link between US interest rates and Japanese currency is not validated
Japanese Govt Bonds (JGB, known as Jags) are offering about 0.25%
a hike in USrates has little influence on marginal diff basis

a weak JYen is perversely excellent for Asian and PacRim economies

the game is played vis-a-vis Europe
most of us ragamuffins have roots in Europe
we Americans still feel a strange loyal responsibility to Europe and our old homelands
we feel sorry for their pathetic clutching of socialism
Europe holds the key now

/ Jim