Carrying on
The recent rapid appreciation of the yen is the scenario regulators dreaded, setting the scene for huge hedge fund losses and a mass unwinding of carry trades. The reality has been somewhat different. By Ryan Davidson
Currency traders have endured a hair-raising few months. After weathering much of the volatility in the financial markets in the third and fourth quarters of last year, the foreign exchange markets have been making up for lost time. Having touched 12-year lows against the yen in March, the dollar hit its lowest-ever level against the euro on April 24 (0.62690 dollars/euro).
The yen's sharp appreciation, in particular, represents something of a nightmare scenario for some. Regulators have long
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