Dollar Slides on Yen In Carry-Trade Retreat.The article presents an update on currency trading worldwide, citing a decrease in the valuation of the U.S. dollar compared with the yen.Wall Street Journal - Eastern EditionLindenmayerIsabelle
Recent rounds of suspected currency intervention have speculators rushing to close what had been profitable carry trades, where they borrowed in low-yielding yen and invested in assets of currencies with higher interest rates. The dollar fell 1.56% to 153.16 yen, hitting its lowest since May 6. ...
the USD/CHF and USD/CAD, they all use the U.S. dollar as the base currency. The Yen is sensitive to factors related to Asian stock exchanges and due to the interest rate differential with other major currencies, it is also sensitive to any change affecting the so-called "Carry Trade"....
which is when investors borrow in a low-yielding currency, such as the yen or the U.S. dollar, to fund investments in higher yielding assets somewhere else. A weakening currency is central to the carry trade since it means that investors have less to repay when they cash out of...
trade agreement trade association trade balance trade barrier trade bill trade book trade cycle trade deficit Trade Descriptions Act trade discount Trade dollar trade down trade edition trade embargo trade expense trade fair trade gap trade good ...
to a near three-month high of 151.945 per dollar on Thursday. It started the month at a 38-year low of 161.96 before Bank of Japan currency intervention and expectations that the Bank of Japan would deliver a hawkish policy tweak at its meeting next week flushed out ye...
Buying the dollar and selling the yen has been popular because of the wide interest rate differential between the two countries. "A lot of this can be chalked up to a bit of unwind as people have been piling in to this carry trade," said Michael Boutros, senior technical strategist at ...
The yen has gained since hitting a 38-year low of 161.96 against the dollar on July 3, boosted by interventions by Japanese authorities and traders unwinding carry trades in which they were short the yen and long U.S. dollar assets. It got an extra lift on Wednesday when...
domestic investors may repatriate capital from abroad. Consequently, the Japanese yen has soared in the past few months, from more than 160 yen to one dollar before Japan's July 2024 rate cut to about 140 yen to one dollar currently. It would not be surprising to see the yen trade back ...
Capital inflows can also drive action in the loonie. When commodity prices are higher, there is often increased interest in investing in Canadian assets, and that influx of capital can impact exchange rates. That said, thecarry tradeis not so significant for the Canadian dollar. ...