When the earthquake hit lots of the news channels were saying that Japan would need to buy or bring yen home because they would need the money for rebuilding efforts.
Now this article says "Dollar/yen soared in Asian trading hours as the Bank of Japan kicked off yen-selling efforts after the G-7 announced it would take coordinated action to curb the currency's post-earthquake rise".
My original thought is they would want a stronger yen. Japan does not have much in the way of natural resources. Would not a stronger yen allow them to purchase lumber, steel, copper, cement products for the rebuilding process, or is it outwayed by the fact they want to export finished products?
We all know China holds a lot of US Bonds. I don't know how much Japan holds. Will Japan cut back on the buying US bonds due to the disaster? If so, I would expect the continuation of QE2 into June, and then could we not see QE3 to make up for any loss of buying by Japan in combination with the disaster to keep econnomies chugging along.