As the price of oil settled above USD 100 back in March, the JPY's role as vehicle in the global carry trade began to crumble. It seems that with inflationary concerns becoming more ingrained, investors began to target those currencies whose central banks were fully able to take the fight to inflation. Risk aversion and periodic losses in global equity markets may impact the JPY's performance at the margins, but more fundamentally, the currency's 'no-win' situation means that it is likely to be trapped in its downtrend against a wide range of currencies for a little while longer.
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