Remaining Zen About The Yen

BREAKING NEWS: Deputy BOJ Governor Uchida said that the central bank won't raise interest rates when markets are unstable. His dovish remark gave a broad lift to risk-on appetite in Asia. We wrote the following before this news came out.

The global stock market panic calmed down today as the most overleveraged trades seem to have been washed out. We didn't view the extreme selloff over the past two trading sessions as being fundamentally driven. So we suggested that investors remain Zen rather than panic over the rebound in the yen, which triggered the unwinding of carry trades around the world.