Monday, Nov 12, 2007
Fears have risen of a mass unwinding of the yen
reuters.com: Yen shock may prompt next wave of market crisis
Just as renewed waves of forced asset sales and bank write-downs risk turning this year's credit market turmoil into a vicious circle, the Japanese yen looks set to deliver another shock to global markets.And as dollar losses against the yen started to spiral on Friday, fears have risen of a mass unwinding of the yen "carry trade" -- currency trades funded by cheap, low interest rate yen and estimated to be worth up to $200 billion.
Posted by chris @ 07:33 AM (308 views) Add Comment
1 Comment
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1. japanese uncle said...
Yen is 30% undervalued whilst GBP is 30% overvalued. Overall 69% gap exists. This is largely in line with purchasing power parity in terms of BigMac price. Yes, correction time!