Excerpt from:  GFT Analysts in the News
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June 13, 2008

Bank of Japan Keeps Its Rates on Hold

Japanese yen continues to drop in forex trading
The Japanese yen continues to drop in forex trading on the currency market this morning on the news that the Bank of Japan is keeping its rates on hold.

Masaaki Shirakawa, the new Bank of Japan governor, defended the move, in spite of the inflation that is affecting Japan, insisting that the Japanese economy is different from the economies in Europe and the United States.

Keeping the Japanese interest rate so low is certain to ensure that the yen remains a favorite funding currency for the carry trade for quite some time to come -- as long as risk appetite remains favorable.

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Topic Tags:  Bank of Japan, currency trading, forex trading, forex trading currency market, interest rates, Japanese yen forex trading, Masaaki Shirakawa, yen carry trade, yen currency trading

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