I’m not very familiar with the currency market but have noticed that although the dollar is gaining against most currencies, its falling against the Yen. Any insight on why this is happening?
For the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
For the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
For the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
For the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
For the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
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