Yen spikes as players unwind risky trades
Thursday, 16 August 2007
TOKYO, Aug 15 (AFP): The yen rose sharply in Asian currency trading today, hitting four-month highs against the dollar and euro as turmoil on global markets prompted players to shun risky bets, dealers said.
They said the dollar fell below the 117 yen level briefly for the first time since late March as market players unwound risky carry trades that play on differences between global interest rates.
The euro fell against both the yen and the dollar, which has benefited from safe-haven buying against currencies other than the yen.
The dollar fell to as low as 116.95 yen in Tokyo afternoon trade, down from 117.55 in New York late Tuesday. It was the lowest level since late March.
The euro dropped to 1.3508 dollars from 1.3532 and to 158.12 yen from 159.06, the lowest point for about four months.
Recent turbulence on global financial markets prompted investors to seek safe havens and to reduce exposure to risky trades.
Credit Suisse forex strategist Satoru Ogasawara said investors were reducing risk, pushing up the yen.
They said the dollar fell below the 117 yen level briefly for the first time since late March as market players unwound risky carry trades that play on differences between global interest rates.
The euro fell against both the yen and the dollar, which has benefited from safe-haven buying against currencies other than the yen.
The dollar fell to as low as 116.95 yen in Tokyo afternoon trade, down from 117.55 in New York late Tuesday. It was the lowest level since late March.
The euro dropped to 1.3508 dollars from 1.3532 and to 158.12 yen from 159.06, the lowest point for about four months.
Recent turbulence on global financial markets prompted investors to seek safe havens and to reduce exposure to risky trades.
Credit Suisse forex strategist Satoru Ogasawara said investors were reducing risk, pushing up the yen.