Currencies: What a difference a month makes

But over the past week, Australia has waded in to buy AUD, especially against the JPY, and the G7 is trying to jawbone some stability into the market. Bank of Tokyo-Mitsubishi UFJ distributed an interesting item this week. It says: “The simultaneous decline in US Treasuries and equities however remains a worrying signal, and a deflationary one. We recall the period of ‘Japan selling’ that accompanied the tail end of Japan’s own banking crisis, and remain watchful of similar implications for the US bond market.