Japanese Yen Dives As Forex Carry Trades Make A Comeback

The Japanese yen plummeted across the majors on Thursday – especially the high-yielding Australian and New Zealand dollars – as carry trades made a comeback. Indeed, news that the government is formulating a plan to aid the financial markets along with new rules against short sales in the US and the Federal Reserve’s $180 billion emergency liquidity injection helped to improve investor confidence. It remains to be seen whether this sort of sentiment will hold, and the next move for carry trades will likely depend on if an official plan is announced on Friday.

[I]Source: Bloomberg

Source: Bloomberg[/I]