Thursday, August 9, 2007

The death of the Yen Carry Trade?

Yen flies as investors shun risk, but dollar up vs. euro

The yen soared on Thursday as investors ditched risky trades funded by low rates in the Japanese currency after one of Europe's biggest banks froze funds with links to the troubled U.S. subprime market. The euro, meanwhile, fell as much as 2 percent against the yen and 1 percent against the dollar after France's largest bank, BNP Paribas (BNPP.PA: Quote, Profile, Research) temporarily suspended redemptions at three funds worth 1.6 billion euros, sending overnight U.S. and euro zone borrowing rates soaring.

Posted by lvmreader @ 09:56 PM (457 views)
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4 thoughts on “The death of the Yen Carry Trade?

  • japanese uncle says:

    It was about time, wasn’t it? Yen has been undervalued by at least 30%. 1 GBP=160 yen 1 EURO=120 yen, 1 USD=95 yen are the reasonable exchange rates. Then, carry trade will be suffocated once and for all, cutting the supply of cheap money for property speculators in UK/US, terminating the housing bubble, leading house prices plummet by 65%. Absolutely plausble scenario.

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  • The return of the Yen. Some folk are going to be crushed in the stampede for the exits.

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  • All mine’s stuffed in me mattress 😉

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  • enuii, can I have your address please, oh and also let me know if you will be out this weekend…

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