Both the Euro and the Japanese yen rallied for five straight days surrounding the Fed rate cut. From Dec. 11 through Dec. 17 the U.S. dollar fell 5.9 percent against the yen, hitting a 13-year low on Dec. 17.
On Dec. 19 the Bank of Japan lowered its interest rate to 0.1 percent, its lowest point since the country ended its five-year zero-rate policy in 2006. December capped a year in which the U.S. dollar/Japanese yen (USD/JPY) fell 19 percent, the pair’s largest annual drop in more than 20 years.
The Euro gained 10.7 percent against the dollar during the same time period, rallying 10 percent in December, the Euro/U.S. dollar’s (EUR/USD) largest monthly gain in 30 years. The December gain occurred after the Euro lost more than 20 percent against the dollar from July through November.
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