Strength of JPY

[frumnat]

I am sorry if this has been asked and answered in this platform.

Could someone please enlighten me on the strength of the JPY? When all else seems to be diving, JPY is gaining strength. What is the rationale for this?

Also, it’s a low-yield currency that I have read. What’s the true significance of low-yield currency?

Thank you.

 

[Rhody Trader]

On the low yield currency thing, that has to do with the carry trade. Folks can borrow JPY at a low interest rate, convert it to another currency and invest or deposit it for a higher interest rate.

As for why the JPY is holding up, repatriation is most definitely part of the equation.

 

[frumnat]

Thank you John. Much appreciated.

Could you please kindly expound on "... why the JPY is holding up, repatriation is most definitely part of the equation."?

 

[moneybot88888888]

gamma, you are stupid

 

[frumnat]

Thank you GJ. Much appreciated.

Too much information at times, but I'll certainly do my homework. :cheesy:

Cheers!

try doing at least SOME of your own homework frumnat. Can start here......

Repatriation

I can't speak for John (who is always helpful) but this kind of thing starts to wear me down after a while (the constant need for spoonfeeding). Newbies will do far better if they try and meet the more experienced members halfway in their search for knowledge.

Just my $0.02 (cue flaming)

GJ

 

[tornhill]

a lot of big hedge funds and other investors were engaged in carry trades, when they are forced to liquidate their positions you see strong moves in favour of the yen. in japan people are really frightened by this, as their companies are loosing their edge on the world markets.

by the way: i am currently owner of a lovely eurjpy short position, feels really good.