Yen Carry Trade
Definition of Yen Carry Trade: A currency carry trade occurs when people borrow in one currency and invest in another country.
For example, suppose Japanese interest rates are 0% and US interest rates are 5%.
Yen Carry Trade Related Articles
Exchange Rates - Definition of Exchange Rates
Peg - Exchange Rate Peg - Dollar Peg
Exchange Rates - How the Government Regulates Exchange Rates ...
YEN CARRY TRADE
Part of the panic is caused by fears that the borrowing of cheap yen at 0.5% per year or less to invest in foreign currencies, metals, bonds and stocks will end.
This leads some to refer to the carry trade as akin to picking up pennies in front of a steamroller.The yen carry trade reversed sharply in 2007 as global interest rate differentials narrowed, ...
 See also: Euro, Saving, Unwind, Banks, Fed
  
|
RSS
