Thursday, 07 June 2007

Japan's Watanabe Sees No Immediate Risk of Yen Carry Trades Unwinding

(Bloomberg) -- Japan's top currency official,
Hiroshi Watanabe, said there is no immediate risk that investors
will dump assets funded by yen loans and cause sudden gains in
the currency.

``The size of any carry trades that would unwind is
relatively small compared to the entire foreign-exchange
market,'' Watanabe, vice finance minister for international
affairs, said in a speech at the Euromoney Japan Forex Forum in
Tokyo today. ``I don't think carry trades pose a risk of a
sudden unwinding, but we still need to monitor these trades.''


Read more at Bloomberg Currencies News

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