danierusan111
User
Platinum Boarder
| Posts: 100 |   |
Karma: 2
|
Yen Bears Capitulate, Dollar May Rally - 2008/09/17 20:18
Hi guys! The Lehman Bros. bankruptcy is even affecting FX... 
The yen will rally in the next six months as a deepening credit crisis prompts investors to shun higher-yielding assets, a survey of Bloomberg users showed.
Investors are the most bullish on Japan's currency since March as the credit losses that led to the collapse of Lehman Brothers Holdings Inc. mount, according to 3,470 respondents from New York to Paris and Tokyo in the monthly Bloomberg Professional Global Confidence Index. Participants became the most optimistic on the outlook for the dollar since the survey began in November as growth slowed in Europe.
Of the 16 most-widely traded currencies, only the yen appreciated against the dollar in the past month, gaining 4.51 percent to 105.80 yen. The yen typically gains in times of crisis as traders exit so-called carry trades by selling high- risk assets and repaying loans in countries where interest rates are low. Japan's 0.5 percent target rate compares with 4.25 percent in Europe, 7 percent in Australia and in 13.75 percent in Brazil.
The index of expectations on the yen rose to 64.75 for September from 49.19 in August. A reading above 50 indicates participants expect the currency to appreciate.
|
Traders Forum 
