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16 May 2013
Forex Flash: Japan flush with liquidity after BoJ easing – UBS
FXstreet.com (Barcelona) - Ever since the Bank of Japan's round of additional easing on April 4th, investors have wondered where all the fresh liquidity will turn up. Will flows fan out across the globe? Or stay at home perhaps, moving into domestic stocks instead?
Foreign currency holdings of Japan's mutual fund industry increased by $15.5 bn during the month of April. That's the biggest monthly increase since February 2012. According to Research Analyst Gareth Berry at UBS, “The fresh liquidity is not all leaking abroad though - holdings of yen-denominated assets grew by $35 bn. That's the single-biggest monthly increase since records began.”
Foreign currency holdings of Japan's mutual fund industry increased by $15.5 bn during the month of April. That's the biggest monthly increase since February 2012. According to Research Analyst Gareth Berry at UBS, “The fresh liquidity is not all leaking abroad though - holdings of yen-denominated assets grew by $35 bn. That's the single-biggest monthly increase since records began.”