Beware of Yen

Hi buddies!!

Hey as earlier we already discussed as to what is carry-trade does really mean? And what are the reasons as to why many people are opting for so-called stoozing which is now carrying a new name called Carry-Trade. From past few months the Japanese Currency the Yen has been in a depreciating condition and was a victim of Carry Trade (CT). Many traders used to borrow money at a low-interest rate and used to buy higher-yielding assets in a different currency. And those who have borrowed money using the Japanese currency have enjoyed a lot of profits. But its time now for the traders to be careful with the low-estimated currency, because the Bank of America has revealed that the Yen is going to move in an upwards trend almost above 4.5% against the dollar and against the Euro too. The expert panel in the Currency market are eager to see the Yen growing up to 4.5% in the coming months, as their would be an interest rate hike in the Japanese currency in the month of August’ 2007.

I don’t think so that the yen is going to make a good yield since this was the same thing been stated from many days. So lets see how things will work out with regards to the Yen. But my humble suggestion is since CT is always risky, so be vigilant.