Foreign investment in Japanese equities is a driver of yen weakness, and the dollar and yen are counting down the seconds to a new high for the year.
The Japanese stock index’s first high in about 33 years is having an impact on the foreign exchange market in the form of selling pressure on the yen. Selling of the yen to hedge against foreign exchange risk by foreign investors investing in Japanese equities drove the dollar higher and the yen lower in May. […]