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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 398.52-4.4%4:00 PM EST

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To: Tommaso who wrote (21230)8/16/2007 1:22:14 AM
From: elmatador  Read Replies (1) of 218800
 
dramatic surge in the Japanese yen over recent days has cut off a key source of liquidity for the global asset boom, setting off a panic flight from emerging markets for the first time since the latest turmoil began.

Japanese investors and foreign funds borrowing in yen at near zero interest rates have accumulated roughly $1,200bn (£603bn) of unhedged positions outside the country, according to BNP Paribas, much of it in high-yielding markets in East Asia or places as far away Iceland, New Zealand and Brazil.

The yen flows have been a key prop for world asset markets over the last two years, along with the petro-dollar surpluses of the oil exporters and the growing reserve war chests of China, Russia, and other rising powers.
telegraph.co.uk
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