Dollar downed

Cover story

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The appreciation of the yen under Yen100 against the dollar shook Asian foreign exchange markets in mid-March. Volatility in the currency pair rose to levels rarely seen in absolute terms, with any appreciation in the Japanese currency sparking a sharp rise in implied volatility.

Unlike the crises in currency markets in 1998 and 2003 when the yen spiked sharply and briefly - over a matter of just days - this latest move had been building for months. Turbulence in money markets hit highs in August

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