Don't get caught holding Japanese yen
News On Japan via Forbes -- Jan 24
Oppenheimer International Bond Fund has historically held around 15%-20% of its assets denominated in one of the largest currencies in the world, the Japanese yen. That shouldn't be surprising, after all Japan is the second largest issuer of debt in the world, behind only the U.S.
But now we've cut the Fund's yen exposure to almost zero.1 That's right, the yen is the biggest weight in our stated benchmark index, and we have almost none of it2 and we plan on having none of it for a while. It is one of our highest conviction bets in the portfolio. The yen has been one of the biggest movers in the currency world this year, losing 3% of its value against the U.S. Dollar as of January 18, and weakening almost 15% since the end of September 2012 (see the chart below). In our mind's the yen's fall isn't done, either, we think this is just the beginning of a longer, more significant structural trend of yen weakness.
|| UNESCO register adds archive of pre-modern Japan mission to Spain |
| || A collection of materials related to a 17th century mission sent by a Japanese feudal lord to Europe and the world's oldest autographic diary left 10 centuries ago by a Japanese regent have been selected for the UNESCO Memory of the World registry, the Japanese education ministry said Wednesday. (Global Post ) |
|| Local govts wary of Mt. Fuji 'traffic jam' |
| || Mt. Fuji, the tallest mountain in Japan, will likely see its summer "traffic jam" of climbers worsen this year thanks to its expected addition to the UNESCO World Heritage List. (Yomiuri ) |
|| 'Abenomics' not raising low-end prostitution prices in Tokyo |
| || In May, Akira Ikoma, the editor of a guide to men's entertainment called Ore no Tabi (My Journey), said that "Abenomics" had caused a spike in prices at high-end soapland bathhouses in Tokyo. However, the same editor tells Shukan Post (June 28) that the initiative is not impacting the low-end market in the same way. (Tokyo Reporter ) |
|| Ex-Aum death-row inmates to testify in open court |
| || Tokyo District Court decided on Monday to open planned examinations of three witnesses who are former senior members of the Aum Shinrikyo doomsday cult and now death-row inmates, during an upcoming trial of another former senior Aum member. (Jiji Press ) |