Yen Is Left Behind as Worst-Performer in Global Reflation Trade

  • Resource currencies seen in ascent before dollar takes over
  • Japan’s overseas M&A picks up, reducing demand for the yen
Photographer: Akio Kon/Bloomberg
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As the global economic recovery from the coronavirus gathers momentum, Japan looks to be standing still, while its currency goes backward.

The yen has already slumped almost 6% against the dollar this year, the worst performance among Group-of-10 currencies, as global markets prepare for interest rates to begin creeping higher almost everywhere except Japan.