One of the big stories in global markets today is how the long-U.S. dollar, short-Japanese yen trade seems to be completely unwinding.
The dollar is currently trading around ¥96.30 to the yen and is down 2.9% on the day after hitting a low of ¥95.89 earlier.
Per Bloomberg TV's Sara Eisen, that's the biggest single-day drop in the currency pair in 3+ years.
It seems like the market has not been re-assured by recent rumblings out of Japan, where the "Abenomics"-fueled rally in stocks has come to a halt in recent weeks.
Nikkei 225 futures are down a whopping 4% from today's close already in after-hours trading in Japan.
If those prices hold up through Friday's close on the Nikkei, Japan will have already declined 20% from its May 22 peak, officially entering a bear market.
On Wednesday, Japanese Prime Minister Shinzō Abe unveiled the most critical part of the experimental economic stimulus program being devised in Japan: details on structural reforms.
The Japanese stock market, which has been surging as the yen has tanked, reacted negatively to the news, plummeting 3.8% in a single day.
Meanwhile, U.S. stock markets have turned negative this afternoon. The S&P 500 is currently trading around 1603, down 0.4%. Earlier, it crossed below 1600, hitting an intraday low of 1598.
And, like the yen, the euro is rallying big against the dollar. Right now, it's trading around 1.3270, up 1.4%.
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