In the foreign exchange market last week, the dollar’s upward trend reversed, with the dollar-yen rate falling below 150 yen.
Three main factors have been cited for this:
- “Risk aversion” due to Trump’s announcement of tariff implementation
- Decline in US interest rates (10-year treasury yields fell from 4.41% on November 22 to 4.17% on November 29)
- Unwinding of “Trump trades” ahead of Thanksgiving on November 27
Let’s examine these three points.