Sharma: Dollar-Yen Is Classic Policy Divergence

The video discusses the yen's turbulent year, influenced by the Bank of Japan's policies and global economic dynamics. It highlights the impact of policy divergence between the US and Japan, with the Fed's rate hikes contrasting Japan's anchored JGB yields. The discussion covers market reactions, global dynamics, and currency trends, emphasizing the strengthening dollar against the yen and euro. The video also explores the implications of political risks and the broader economic outlook for 2017.

How might the rise in US yields affect the yen and other currencies?

What role does political risk play in currency dynamics heading into 2017?