Yen Under Pressure: 3-Minutes MLIV
Speakers
Paul Dobson
— Executive Editor, Bloomberg
Summary
Paul Dobson discusses the yen's slide to levels not seen since 1986, the impact of a hawkish Fed on Asian currencies, and the robust momentum in Japanese and Korean equities driven by AI investment.
- Yen hits 40-year low, but Japanese authorities' rhetoric suggests no imminent intervention.
- Hawkish Fed pivot lifts US yields and the dollar, pressuring Asian currencies.
- Korean won under extra pressure as equity rally forces foreign selling.
- Japanese and Korean equities had record quarters, with analysts remaining bullish.
- AI story and large investment plans support confidence in continued growth.
Ideas
Korean won pressured by Fed and equity flows
The hawkish Fed pivot is lifting US yields and the dollar, drawing cash away from Asia. In South Korea, the equity market rally is causing foreign funds to hit portfolio limits and sell, adding extra pressure to the won beyond the broad dollar strength.
Bullish on Japan and Korea equity momentum
Asian equities, particularly Japan's Nikkei and South Korea's KOSPI, have had record or near-record quarters, driven by confidence in the growth and AI story, large investment plans, and bullish analyst calls like JP Morgan forecasting further gains. Momentum is expected to continue despite volatility.
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This Bloomberg Markets video, published June 30, 2026, features Paul Dobson discussing USD/KRW, N225, EWY. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Paul Dobson · Tickers: USD/KRW, N225, EWY