People are getting ready for the end of the tightening cycle and they are beginning to feel like the dollar?s rally is nearly over.

Normally that would strengthen the euro.

If the yen continues to strengthen, then it's not a good thing for the Japanese because their exports aren't going to be competitive into the U.S.. I think as you get to 105 and pull below, it's going to hurt the Japanese stock market. So, too strong of a yen is not good.

It's a lose-lose situation for the yen. Traders feel they shouldn't raise rates because the economy is still too weak at this point.

The dollar was reluctant to follow movements in the equity market, but when the selling became fierce, it started to respond.

I think that these countries do not want to miss out on the export opportunities in the United States and that's one of the primary reasons behind this.