WhyItDropped

Nikkei 225 · August 7, 2013

When the yen turned back up

-4.00%

single-day change vs previous close

Part of a longer stretch

Two years of more easing

early in it · 2013-06-13 → 2015-06-24, +67.68% over the whole period

What happened that day?

  • On 7 August 2013 the Nikkei 225 fell 4%
  • The yen had been strengthening since the day before, reaching the ninety-sixes per dollar
  • In this period the Nikkei and the yen traced almost the same line, inverted. When the yen rose the index fell
  • That is because one thing had lifted the price. With a single basis, everything shakes when it shakes
  • No single trigger can be pinned to this day
  • The crash before it had been 20.36% from the peak
  • The relationship held for years afterwards

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.