WhyItDropped

Nikkei 225 · July 3, 1995

When currency intervention turned it

-0.22%

single-day change vs previous close

Part of a longer stretch

The year the rescue bought

early in it · 1995-07-03 → 1996-06-26, +56.48% over the whole period

What happened that day?

  • The Nikkei 225 moved 0.22% on the day, and around here is the bottom of this decline
  • That spring the yen had reached the seventy-nine range against the dollar — a record, and exporters' earnings collapsed with it
  • Through the summer Japan and the US intervened together and the yen began to weaken
  • The Bank of Japan also cut rates sharply, to effectively near zero
  • That the exchange rate alone can turn this market is the signature of the period. Exporters carried that much weight
  • The rebound that began here ran to June 1996, and then broke again on the banks' bad loans

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.