Bank of Canada Governor Stephen Poloz, right, and Finance Minister Bill Morneau speaks during a news conference on Parliament Hill in Ottawa on March 18.In 1971, ex-U.S. Treasury Secretary John Connally bluntly informed his fellow finance ministers: “The dollar is our currency, but it’s your problem.
The PMI surveys are typically conducted in the second half of a month and the data in the “flash” survey is usually collected in the week or so before the data is released, so economists reckon next week’s PMIs will provide the most comprehensive overview so far of the coronavirus impact. The picture may become clearer in the coming weeks, as the first quarter comes to an end and companies start preparing their results. This week, FedEx and Marriott walked away from their 2020 forecasts because of the uncertainty.BIG IN JAPANISSEI KATO/Reuters
Part of the reason may be that it’s been there and done that - with little success. Short-term yen rates are negative, longer yields are anchored and the BOJ would not cut them further so banks’ profits are protected.The other reason might be the yen, which has been weakening sharply as the pandemic has spurred global investors into hoarding dollars.