USD/JPY: What Happens When the Interest Rate Spread Goes Negative?
Posted on December 17, 2008 at 11:50 AM EST
This is not the first time in recent history that US interest rates have fallen below Japanese levels. In the past 40 years, this has happened at least 5 times. The most recent time was in 1993. The following chart illustrates how USD/JPY performs whenever the interest rate spread between the US and Japan [...]