Analysis: Currencies

Is the yuan carry trade dangerous for the markets?

Since investors painfully relearned that accelerated unwinding of yen carry trades can cause market turmoil, they've been keeping a close eye on other such operations, particularly those involving the...

What is the Chinese yuan carry trade and how is it different from the yen's?

A global markets sell-off spurred by an unwinding of yen-funded carry trades has turned the spotlight on China's yuan, which is also used widely as a cheap funding currency. While August...

Dollar tenses for data verdict on rate cut risks

The dollar was in limbo on Tuesday as investors waited to see how U.S. economic data affected the chance of outsized rate cuts, while a rally in Japanese stocks helped staunch the bleeding in yen...

Analysis-Investors expect market selloff will slow, stretch and spread

This week's huge selloff in global markets, triggered by an unwinding of yen-funded trades, is far from over and could eventually spread to credit markets, impair some banks and possibly hurt the U.S....

Worst of market selloff might be over but hold on tight, Goldman says

After a turbulent week in global markets, the worst of the selloff might be over but investors need to keep the reins tight on big directional bets for now, Goldman Sachs global head of hedge fund...

Fed easing bets, carry trade unwind turn analysts bullish on Asian currencies

Analysts have turned bullish on most major Asian currencies for the first time in more than a year, bolstered by rising bets of interest rate cuts by the Federal Reserve and an unwinding of yen-funded...

Why the yen-funded carry trade is 'no longer as attractive'

STORY: Monday's sell-off was exacerbated by investors winding down yen-funded trades that had been used to finance the acquisition of stocks for years after a surprise Bank of Japan rate hike last...

Unwind of massive yen-funded carry has room to go, analysts say

NEW YORK, Aug 6 - An epic unwinding of the yen-funded carry trade that has reverberated through global markets may have further to go, analysts said on...

But what's going on?

It had been a promising summer, with falling inflation and the prospect of the US Federal Reserve lowering the cost of borrowing for the first time. But then, lo and behold, recessionary fears reared...

Dollar poised for comeback, recent weakness just a hiccup

The U.S. dollar will claw back some of its recent losses over the coming three months on expectations financial markets have again gone too far in pricing in too many Federal Reserve interest rate...

Global market rout has more to do with end of cheap funding than US economy

A meltdown in world equity markets in recent days is more reflective of a wind-down of carry trades used by investors to juice their bets than a hard and fast shift in the U.S. economic outlook,...

Week Ahead for FX, Bonds : Fed Meeting to Take -2-

Barclays economists expect exports growth to have jumped sharply in July, and import growth to have picked up as well, resulting in a continued large trade surplus. They anticipate July's inflation...

S.Korean won, Thai baht slip; other Asian currencies lukewarm

The following table shows rates for Asian currencies against the dollar at 0201 GMT. CURRENCIES VS U.S. DOLLAR ...

S.Korean won, Japanese yen lead gains among steady Asian FX

The following table shows rates for Asian currencies against the dollar at 0201 GMT. CURRENCIES VS U.S. DOLLAR ...

Currencies: Sterling gets good momentum

What's going on in Her Majesty's land? The British currency has put in a fine weekly performance that can hardly be blamed on American inflation ....

EU considers allowing faster energy tax cuts if prices jump, draft shows

The European Union may make it easier for governments to slash energy tax rates if prices jump unexpectedly, under draft proposals countries are discussing to overhaul the taxes in the bloc. ...

Global bond funds see hefty inflows on expectations of rate cut

Global debt funds attracted inflows for a 29th straight week in the seven days to July 10 on expectations of a Federal Reserve rate cut amid weakening labour market conditions and easing inflation...

Sterling heads for best two-week run since November

The pound coursed towards its best two-week performance against the dollar in eight months on Friday, after data pointed to an improvement in UK growth, while the U.S. economy shows signs of fatigue. ...

Yen choppy amid intervention nerves; Asia shares eye weekly gain

The yen swung between losses and gains on Friday in volatile trade, reflecting investors' skittishness after Tokyo was thought to have intervened to prop up the Japanese currency in the wake of...