Loading ...A weak currency, which is only weak in an historical context to other currencies, means above all else that imports are more expensive, and exports are cheaper. Whether by design or circumstance. Interesting that the 10yr JGB rates went up last night by the same amount as the gilts. The Japs need a lower Yen to counter the cost of tariffs, the Brits are getting a lower pound because of profligacy. The USD should be lower due to excess spending, but it’s the reserve currency – although US bonds rose a bit last night too.
All currencies are weakened over time by printing. Sometimes it is forced on countries, sometimes it’s policy. Either way, they’re all in the same race. The race to zero.