Asia Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joseph Beltran who wrote (7011)	10/8/1998 10:20:00 AM
From: Robert Douglas	of 9980

I'm wondering how much of this dollar/yen volatility is due to hedge funds liquidating the balance of their yen short positions to salvage any type of profit. it doesn't appear that the fundamentals are driving/repsonsible for this extreme of volatility. thoughts/comments? Maybe you should consider that the opposite might be true. Perhaps it was the massive hedge-fund participation in these yen-carry trades that pushed the currency to an unrealistic level in the first place and now the panic unwinding is returning the currency to a more “fundamentally” sound price. After all it was the ever-lower level of the yen that made these transactions profitable which attracted more dollar buying that drove the yen still lower. Are you surprised that once the music stops there aren't enough chairs for these funds to sit in? These carry trades have been nothing more than a speculation in the decline of the yen, as yesterday's action made clear. -Robert

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next