Monday, April 11, 2016

FX Crisis Brewing: Japan Needs a Stronger Dollar, China Wants a Weaker Dollar: The Fed Can’t Please Both

http://www.washingtonsblog.com/2016/04/fx-crisis-brewing-japan-needs-stronger-dollar-china-wants-weaker-dollar-fed-cant-please.html

 Foreign exchange (FX) is a zero-sum game: if one currency weakens, another must strengthen. Since the value of a currency is relative to other currencies, all currencies can’t weaken together: at least one currency must strengthen as others weaken.

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