2006-10-03 23:22:46 · 3 answers · asked by saak 1 in Business & Finance ➔ Investing
There is every fundemental reason in the world the yen should appreciate a lot, eventually. The trade imbalance between the US and Japan also points toward significant upside for the Yen against the dollar. The problem is japanese interest rates are still very low in absolute terms. This will change over time, but the Bank of Japan may not raise rates again this year. As a result, it would be pretty expensive to sit on highly leveraged long position until the market comes to it's senses. I am also not at all convinced the yen carry trade has wound down, and this is keeping the yen artificially low, although when it finally does wind down with increasing interest rates, this will create even more upside.
2006-10-04 16:58:31 · answer #1 · answered by sarinagirl171988 2 · 0⤊ 0⤋
depends upon dollar value and price of oil
if oil falls below $50 per barrel which is going to happen soon then yen will bounce back
if bush decides to attack iran or sudan which he can for oil resources then it may again crash
2006-10-03 23:29:57 · answer #2 · answered by Explorer 5 · 0⤊ 0⤋
^^ The value of the Yen and the price of Oil have no correlation really...graph them and check them out.
2006-10-04 01:33:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋