BCA Research - Independent Investment Research Since 1949: "Japanese Yen: Bounce Or End Of The Carry Trade?
11:43:00, August 03, 2007
The downtrend in the Japanese currency will continue once the turmoil in financial markets dies down.
The recent bounce in the yen does not represent a trend reversal that will end the “carry trade”. Rather, the sharp appreciation observed in the past few days can be attributed to heightened risk aversion: As investors close their long positions in risky assets, they repay their yen-denominated loans, thereby pushing up the currency."
2007-08-06
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