The prospect of a renewed widening of the spread between two-year yields in the US and those in Japan is being cited by some as a good reason to expect the yen to weaken if the Fed implements “Operation Twist”. That view seems overly-simplistic. The stronger point is perhaps that Operation Twist is an alternative to further quantitative easing from the Fed, which might otherwise have driven the dollar lower still.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services