Closer Yen, Yuan Correlation Is Danger Sign for Asian Currencies
- 120-day correlation between yen, yuan has risen to record high
- Asian currencies will be hit by yen, yuan losses, Mizuho says
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Asia’s two most important currencies are moving together like never before, increasing the risk of a broad decline among their regional peers amid the relentless strength of the dollar.
The 120-day correlation between the dollar-yuan and dollar-yen currency pairs climbed to 0.54 this week, a record high in data compiled by Bloomberg starting in 2007. A reading of 1 would mean the two move in lockstep.