Good Debt - Yen Carry Trade - Part II August 7, 2007
Posted by nbeyond in : investment, issues , trackbackFollowing the first post of Good Debt, I have collected some data about Yen value against US dollar. Check out this long-term fluctuation over past 37 years.
Overall, Japanese Yen has gotten stronger starting 1971
If you look at the recent data over last three years, the value of Yen kept dropping. One thing additionally important is that the value of the US dollar has also been plunging against Euro but not as much as Yen.
US Dollar is now even at a humiliating level against Euro. In other words, mighty Euro. This is just an observation for what happened in the past. Nobody wants to keep Yen. Instead, many want to borrow Yens and exchange them to other better valued currency. Just by doing this, they can earn as much of the interest difference and the value of the exchanged currency.
- What if this lower valued Yen against US dollar stops on a sudden?
- What if Yen is getting strong back as used be?
- Who are now paying this price because of the low valued Yen?
- Who are getting benefits thanks to the zero percent interest rate?
Answers for these questions are easily found from daily newspapers. These answers are thinkable and subject to personal belief. Do you see any chance to make a use of this phenomenon?
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