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| Articles about Yen Carry |
| The Death of the Yen Carry Trade? Think Again! | | 2007-08-16 21:58:43 | | “When there is blood in the streets, it’s time to buy.” Obviously, this saying could not be any truer than the situation that investors all over the world are experiencing at the time of writing this post. Fear and risk grip the global marketplace in a way that hasn’t been seen [...] | | By: TheFinancialWhiz.Com | | |
| | Soros Blamed Yen Carry Trades for Turbulence | | 2007-03-10 13:00:00 | | George Soros blamed yen carry trades as one very important factor in the current turbulence in global financial markets. As the YEN is basically interest-free, a lot of money is coming from borrowing and lots of Japanese money are going abroad. As the YEN weakened, a lot of people got into yen carry trades, thus causing a shake-out in financial markets. Soros also attributed the turbulence partly to a slowdown in the US economy and the housing situation. A slowdown will lead the US economy to more balanced growth while faster growth elsewhere will help correct the US trade deficit but that will lead to less liquidity in the market, Soros said in an interview with the Financial Times.Soros predicted that the Chinese govt will try to prevent a collapse of mainland bourses in the run up to the 2008 Beijing Olympics. He talked about the market being kept on a "even keel" until after the games. According to Soros, the govt had to intervene to cool down an overheating stock market, which had | | By: Forex Trading Journal | | |
| | Yen Carry Trade - Two Different Points of View | | 2007-02-20 13:54:00 | | Views on the carry trade and the weak Yen are different among traders.David Andrew Taylor has an interesting point of view: The carry trade is said to be at around $1 trillion that the world knows about (perhaps another $1 trillion that we don't). That means that $1 trillion dollars have moved out of Japan in the form of borrowing from Japanese banks, and transfered out into other parts of the world and deposited earning higher interest rates.What would happen to Japan's economy if $1 trillion dollars were to all of a sudden show back up in Japan? Talk about liquidity. In fact, there would be so much money sloshing around, the Bank would have a hard time controlling these assets. You want to see inflation? Throw money at citizens like it's growing on trees. You want to see growth? Put suitcases of cash outside the bank's doors for businesses to walk by and pick up if needed. And, the yen would rise in response to this move.It's a really interesting way of seeing the situation. But if you turn the other way around, some clues on how a weak Yen is good for Japan start showing up.A weak Yen means that Japanese businesses are more competitive when exporting. Maybe that's exactly what they want - a weak currency so that Japanese companies can compete worldwide. Look at the situation in Thailand: they took desperate measures at the end of 2006 because of the stronger and stronger Baht that was hurting their exports. Businesses were the ones putting pressure on the national bank there to do something about their strong currency.UPDATE: Bank of Japan increased the interest rate for the Yen today, at 0.5%. | | By: DailyFX | | |
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