The dollar is through the floor against the Yen, trading at US$1=円90.545. I don't know why. There's speculation it's related to the collapse of the GM/Chrysler bailout bill in the Senate tonight. There's other suggestions that it's related to FannieMae.
That Yuan devaulation story keeps not going away, with analysts now saying that China will "let" the Yuan trade downwards over the next six months.
Since I started typing this, the dollar has fallen to 円90.270. This is a huge shift. Nikkei is stairstepping down after lunch, bouncing off limit stops. Overnights (futures) on the S&P 500 are down 40ish points, and that's off lows.
eta: US$1=円89.090. Um, yikes. Shit be goin' down. I checked again after typing that sentence: 円88.935. These are monstrous moves down for the dollar in the only open Dollar Index currency. Brace for impact.
eta2: 円88.410 before bouncing, at least for a moment. I've never seen anything like this. This is a 4.5% swing in 24 hours.
eta3: Courtesy gfish: "There are no incentives to buy the dollar right now," said Hideki Amikura, deputy general manager of foreign exchange at Nomura Trust and Banking Co. in Tokyo, a unit of Japan's largest brokerage. "U.S. politicians can't even agree on stopgap measures for the auto industry." Despite that, back up to 円89.405 and generally recovering at least some of the lost ground. I have no idea what tomorrow looks like. None.
eta4: This is the second craziest overnight I've ever seen. Seriously, that US dollar drop was time-to-put-the-baby-in-the-rocketship scary. CNN is reporting that TARP funds might be used to bail out the Detroit automakers, without conditions. Yen/Dollar trade seems to be stablising as the Nikkei leveled off and closed for the day down 5.6%. (Seriously, it looked like it was going to be much worse, for a while.) Hang Seng (Hong Kong exchange) is still open and down a bit over 6%. US dollar is dropping against Pound Sterling, Euro, Swiss Franc even as those currencies also drop against the Yen - but the drops are small. Are Japanese and Chinese investors are taking their money home? Remember: Yuan/Renminbi are not freely convertable. Yen are.
Edited original forex link to a source actually showing what happened; Yahoo's charts aren't working right for unknown reasons.