Excerpt from: Forex Analysis
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| October 06, 2008 | | Is the carry trade "dead" in currency trading? | The yen is gaining in currency trading on the FX market as investors
consider that the carry trade might be "dead" -- at least for now. For
the month of September, the yen was the only currency to make headway
overall against the U.S. dollar in forex trading. Additionally, the
current climate of risk aversion is making the volatile carry trade
less desirable.
Things are changing as uncertainty in the European
and American markets, especially surrounding financial institutions, is
making things dicey. This is leading to a change in the forex traders
do things for now. Bloomberg reports on the financial markets and the place the yen has in currency trading:
``We are in a multi-year trend reversal,'' said Paresh
Upadhyaya, a senior vice president at Putnam Investment LLC in
Boston who helps manage $50 billion in currency assets. ``We are
going to see a global central bank easing cycle. The yen is the
place to be in this environment of economic slowdown and
heightened volatility.'' | Topic Tags: carry trade, credit crisis, currency trading FX market, risk aversion, yen carry trade, yen currency trading, yen FX market | |
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