Un-Altered Interest Rates

The Bank of Japan has held its interest rates at 0.5%. This decision of BOJ has surprised many as some of the fellow investors were thinking of hike in the interest rates. But this decision has followed a recent dip in the consumer prices. And resulted in Yen’s weakness. This un-altered interest rate has sent the yen to a one week low against the Euro. Expert Panel on the Currency market are recommending that the rates will remain unchanged till next month’ (ie. Till July’2007) meeting of the BOJ with respect to the Japanese currency. So it is clear that carry traders can enjoy by sitting back in their seats with yen as their professional tool.

In my opinion the carry-traders can enjoy their profits as long as the Japanese currency market is weak, but it is not quite sure when the market will recover. So, In my opinion the carry traders should be more careful with regards of using yen as their profit-making tool.