Excerpt from: GFT Analysts in the News
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| June 30, 2008 | | Japanese yen rises in currency trading | The yen is doing well in forex trading on the currency market this morning, as risk aversion sets in. The carry trade is becoming more difficult to maintain, and FX traders are opting to unwind.
With oil prices up yet again, and with the stock markets uncertain, risk appetite is low as investors seek safer places to invest their money. This means that the Japanese yen is at an advantage right now in currency trading.
Another item that has been helping is the upgrade that Japan received to its local currecy debt rating. Bloomberg reports on this development for the yen in forex trading:
``The upgrade has given a bullish tone to the yen,'' said
Antje Praefcke, a Frankfurt-based currency strategist at
Commerzbank AG, Germany's second-biggest lender. ``The yen's
gaining on increased risk aversion.'' The Japanese currency may
advance to 158 per euro and 104 versus the dollar in the third
quarter, Praefcke said.
| Topic Tags: carry trade, currency trading, forex trading, forex trading currency market, FX traders, Japanese yen currency trading, Japan local currency, oil prices, risk aversion, yen forex trading | |
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