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Strategies & Market Trends : The coming US dollar crisis

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From: Real Man11/17/2009 3:04:44 PM
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ANALYSIS-U.S. dollar carry trade may exceed yen peaks

forbes.com

* Dollar carry trade estimated as high as $500 bln end-Q2

* Yen carry trade hit $1 trln yen from 2004-2007

* Dollar carry could have years to run

"The dollar carry trade could be bigger than the yen carry trade
and could go for years -- at least three or four," said Richard
Franulovich, senior currency strategist at WestPac in New York.

Increased carry trade in the dollar would likely result in
further declines in the dollar, which has fallen 7 percent so
far this year against a major currency basket , weighed down
by increasing risk appetite and low interest rates.
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