Dollar/Yen Relationship

As the Japanese yen and US dollar continue their seemingly inexorable rise, it's becoming more and more clear just how large and diversified this market has become. The yen reached the almost unheard of level of 93 to 1 USD in early trading Tuesday while the dollar continues to appreciate against other major, and emerging, market, currencies. Even though the Yen quickly reversed from those levels, it still remains elevated relative to historic norms.

Along with share prices and property markets around the world, commodity prices-- whether it's oil, wheat, corn, sugar or metals-- have plummeted right along with them. And even though the price of gold has held up comparatively well, even that safest, most secure form of wealth, has not increased anywhere near the degree many thought it would, and should, have given the depth and seriousness of the financial crisis.

That's not to say that gold won't do well once the massive and ongoing de-leveraging and liquidations by hedge and other highly leveraged funds runs its course, a process that is progressing.

by Jeff Manera |  10/29/08