Analysis: Currencies

Hopes for revival of Brazil's IPO market evaporate

Concerns about Brazil's fiscal health and high interest rates have helped dash hopes that as many as 20 of its companies could go public this year, ending a two-year drought in the country's...

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...

US producer prices rise less than expected in July

U.S. producer prices increased less than expected in July as a rise in the cost of goods was tempered by cheaper services, indicating that inflation continued to moderate. The producer...

MORNING BID AMERICAS-Market lull as PPI eyed, Nikkei returns to base

A look at the day ahead in U.S. and global markets from Mike Dolan Much like Wall Street's rapid healing on Friday, Japanese stocks completed their week-long, hair-raising round trip on...

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...

What is the yen carry trade?

Global stock and bond markets, in particular Japan's, are being rocked by an unwinding of the hugely popular yen carry trade. That trade, which involves borrowing yen at a low cost...

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...

Unwind of $500 bln yen-funded carry trade only 50% done, UBS says

An epic unwinding of the yen-funded carry trade that has reverberated through global markets is only about 50% done, a UBS analyst estimated on Tuesday. Days of havoc in global markets...

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 ...