Good morning,


There has been much written in recent weeks in relation to the Japanese Yen, which hit a 34 year low against the US dollar in late April. Whilst it has strengthened since, the combination of a (relatively) hawkish Fed vs dovish Bank of Japan suggests it could remain under pressure. One positive consequence is a holiday in Japan is (again relatively!) cheaper than it has been in the past.


We are all aware of the growing dominance of the US from a geographical basis, and this flows through into currency exposures. Approximately 70% of developed world equities are now denominated in US dollars, and this influence increases further when you consider currencies pegged to the greenback (such as the Hong Kong dollar) and those commodity currencies which are more exposed to dollar fluctuations (New Zealand, Norway).  This dominance means the weakening Yen also flows through against the euro, which has also strengthened against the Yen, by around 6% so far in 2024 – materially paring back the gains of euro investors in the Japanese stock market.


Finally, thanks to all who attended our Investment Conference last Thursday. Whilst a more formal follow up will come in due course, if anyone would like to discuss any of the content please do get in touch.


As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.