BNY Strategist's Katsu Curry Index Challenges Yen Value Assumptions

A Bank of New York Mellon (BNY) strategist has developed an unconventional method to gauge the value of the Japanese yen against the US dollar. The 'Katsu Curry Index' uses the price of katsu curry, a popular fast-food dish in Japan, as a proxy for the yen's exchange rate.

The index suggests that the yen is significantly undervalued against the dollar, implying that the USD/JPY exchange rate should be lower. This discrepancy between the actual and implied exchange rates could have significant implications for investors and traders.

The BNY strategist's analysis uses data from McDonald's Japan to determine the price of katsu curry and then applies this information to estimate the yen's value against the dollar.