Yet again the Yen rebounded today after dropping to its lowest against the Euro ,the yen rose to 163.55 per euro at 9:28 a.m. in London from 163.60 late in New York yesterday, when it reached an all-time low of 164.29. when investors sold emerging-market assets bought with money borrowed in Japan after Chinese stocks fell.
This happened after China increased a tax on securities transactions to stem a rally in shares. This was happy news for the Yen causing investors to lower their risk apetite and cut on the carry trades they have been doing for quite sometime.
I presume that the falling stocks will prompt traders to buy Yen as it raises concern about how long carry trades can continue, this is a great opportunity for the Yen to make up for it's losses agianst the Euro and the Dollar till the Chinese authorities take additional measures to stable the stock markets.
No comments:
Post a Comment