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The hammer and the yen
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CT-July 2007-4
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It's been rumored for a while, but recent statements by Japanese finance officials make a stronger yen seem increasingly likely. Is the yen carry trade really doomed, or is this too obvious a conclusion?
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Detailed Description
The Japanese like to say the nail poking out gets hammered back in. The yen currently is poking out and the market may be about to hammer it.
In this context, that means buying it and raising its price vs. the other major currencies, especially the current victims of the yen carry-trade — the New Zealand (NZD) and Australian dollars (AUD), the British pound (GBP), the euro (EUR), and the U.S. dollar (USD).
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