Thursday, 26 July 2007
Yen Advances as Falling Stocks Prompt Carry Trade Unwinding
It would be wise to hedge any open long positions to cover what could be a major fall.
July 26 (Bloomberg) -- The yen rose against all 16 of the most actively traded currencies as global stocks fell on concern tighter credit will slow the economy and traders bought back yen used to finance investments outside Japan.
Japan's currency strengthened to the highest in three months against the dollar and increased 4.4 percent versus the Brazilian real and 4.1 percent against New Zealand's dollar. The 10-year swap spread, a gauge of what companies pay over benchmark lending rates, widened as much as 77.38 basis points, the most since January 2002.
Labels: yen
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