The Euro is going down as well. 1.065 to the dollar. Last Summer it was 1.30. China has been dumping US bonds for the last several months. Was that to stabilize their yuan as opposed to the lack of confidence in the dollar ?
Well, firstly, it's better to look at all these things in trade-weighted terms. For the Yuan, we would observe arnd 9.5% depreciation from the 2015 peak. For the yen, it's more like 23.5% from the 2012 peak. And yes, you could argue that, at some point, the depreciation of the yen could signal something sinister for Japan, so it needs to be observed carefully. On the other hand, you could also argue that the appreciation which occurred between 2008 and 2012 was never warranted by the fundamentals in the first place.
Elena Holodny @elenaholodny 4h4 hours ago The rise and fall of the yuan, 2000-2016. http://www.businessinsider.com/china-yuan-timeline-16-years-2016-12…
Even at its highest exchange rate, Japan never had a current account deficit, so, can one argue it was never warranted?