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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (2516)	10/31/1998 1:49:00 PM
From: Ramsey Su	Respond to of 2951

Jim, I don't really understand why the yen is trading so high. This may be one explanation. Ramsey TOKYO (Nikkei)-The foreign-exchange market is increasingly uneasy over yen-buying by U.S. hedge funds and other speculators, market observers say. On Friday, U.S. hedge funds and other participants actively squared positions in Tokyo by selling dollars and buying yen. The moves took place amid growing expectations that the Group of Seven industrialized nations will soon unveil measures to step up the monitoring of global flows of short-term capital, sparking fears that regulations on the activities of U.S. hedge funds and other speculative investors may be tightened. A trader at one European bank attributed the yen's sharp rise on Friday to massive dollar-selling by a major U.S. hedge fund. Some market observers said previously that dollar-selling by U.S. hedge funds striving to cover losses subsided after playing a major role in the yen's sharp rise earlier this month. Others, however, expect hedge funds to boost their dollar-selling toward the end of the year in order to trim their assets further. Following moves by international financier George Soros to close emerging-market funds, concerns are also mounting about the swelling losses incurred by hedge funds and other speculative investors, many of which have been hit hard by the turmoil in global financial markets. In addition, a growing number of market participants expect financial institutions to pull more money out of hedge funds toward year-end, prompting such funds to sell dollars and liquidate more assets. (The Nihon Keizai Shimbun Saturday morning edition)