Yen Falls to All Time Low
June 25, 2007 – 5:39 am
The President of Japan’s Central Bank announced that a rate hike is unlikely, which is good news for currency traders.
“As long as we don’t have any tick up in the global risk aversion, then carry trade will remain the dominant theme for FX markets, and the weak yen,” said Niels Christensen, foreign exchange strategist at Nordea in Copenhagen.
Despite raising global interest rates, business is as usual for currency traders, as they continue to put on carry trades.
The yen was pinned near a 4-1/2-year low against the dollar and 15-year troughs versus sterling on Monday, staying under pressure as investors kept selling the low-yielding currency in carry trades.
