Economics
Yen’s Bearish Signals Expand as Ties to Stocks Rise: Currencies
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The link between Japanese stocks and the yen is back on the rise, foreshadowing tougher times ahead for a currency that’s already the weakest since 2007.
The 30-day correlation between the dollar-yen rate and the Nikkei 225 Stock Average climbed to a four-month high of 0.4 this week, up from zero before the Bank of Japan unexpectedly pledged on Oct. 31 to pump more money into the economy. A reading of 1 would mean the two were moving in lockstep, while minus 1 would mean they were moving in opposite directions.