- Weakening Yen sparks fears of trade disruption & likely crypto impact.
- China shifts focus to manufacturing, challenging Japan’s exports.
- Stable USDCNY rate remains crucial with possible US Fed interventions.
The recent depreciation of the Japanese Yen against the US Dollar has sparked economic anxieties across global markets. Financial experts, including former BitMEX CEO Arthur Hayes, are closely monitoring the situation due to its potential to disrupt international trade, exacerbate currency competition, and ultimately, impact the cryptocurrency sector.
In response to Japan’s monetary policy, China appears to be shifting its economic focus from real estate to strengthening its manufacturing sector. This strategic move, aimed at boosting export competitiveness, carries particular significance for the automotive industry, a major export sector for both China and Japan.
Source: Arthur Hayes
Caption: The CNY/JPY exchange rate’s rise suggests increasing cost competitiveness of Japanese goods relative to Chinese goods
As the CNY/JPY exchange rate climbs, Chinese products become less competitive relative to their Japanese counterparts thereby escalati…
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