(Bloomberg) -- Political shakeups in India and Mexico have failed to dissuade Japan’s large cohort of individual investors from betting on emerging-market...
-- Political shakeups in India and Mexico have failed to dissuade Japan ’s large cohort of individual investors from betting on emerging-market currencies.That’s another factor that may keep the yen weak against the dollar for now. Retail investors have poured into so-called carry trades that profit by raising cheap funds in yen and exchanging them for foreign currencies to invest in higher-yielding assets outside of Japan . Mexico and Turkey have been popular investment destinations.
The yen advanced to as much as 154.55 per dollar this week, the strongest in about three weeks, after weak US economic data fueled speculation that the Federal Reserve will cut interest rates at a faster pace. Concern about the carry trade’s outlook may have added to the pressure.But with Japan’s yield gap with the US still wide, the yen has reversed course since then and was trading around 155.56 in Tokyo on Thursday morning.
Traders who scooped up Warren Buffett’s Berkshire Hathaway shares at a massive $620,000 discount during glitch will have their deals canceled by the NYSE
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