Not only do we have Chinese banks writing off vast sums prompting talk of multiple defaults, but we’ve also seen a sharp tightening of domestic money market rates.
This has prompted falls in Asian stock markets including the Nikkei which has further prompted yen buying.
There is also talk that ACBs ( Asian Central Banks) are now adding more yen to their USD reserve-diversification shopping basket, and that will also be lending to the yen-pair selling pressure today.
