Imagine 12.5% of the relatively wealth of an entire country, wiped out
That's the second-biggest decline in can remember in the pair. At the height of the financial crisis it fell 14% in a day.
NZD/JPY is the traditional barometer of the carry trade and when there is a rush to the exits, it's ugly. The move extended to 71.21 but a wave of buying in ultra-thin liquidity led to a quicky bounce to 76.05.
The thing is, there is no visible crisis at the moment.
But 1987 proved that there doesn't need to be a clear catalyst for a market panic.
