As trading closed Wednesday the S&P 500 dipped into negative territory for the year, Wall Street closed 2 percent down. The dollar plunged to lows against the Japanese yen unseen since World War II.
Even as the Japanese government refutes rumors that the Tokyo stock exchange will be closed Thursday, the US dollar sank Wednesday while the yen rallied in the aftermath of this week’s earthquake.
News that the Japanese nuclear plants were “out of control” made US traders recoil today. Domestic reports about a still-struggling real estate market sent remaining risk-averse investors home.
The yen set a record high of Y76.36 today, soaring past its previous high of 79.70. According to the Financial Times, this high water mark signals investors’ confidence “that Japanese investors and institutions will sell foreign assets and bring money home for reconstruction efforts.”
European markets followed America’s drop Wednesday, closing down 1.6 percent. Tokyo rose 6%, partially making up for Tuesday’s record 11 percent plummet in the world’s third-largest economy.
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