Yen continues to rally as investors unwind the carry trade.
05.03.07
The Yen struck a three month high against the USD as investors rushed to reverse carry trades. Very low interest rates in Japan had encouraged many investors to borrow Yen and use the money to invest in high-yielding currencies and their assets.
GBP, one of the major high-yielding currencies in the carry trade fell to its lowest level against the USD in more that three months and the lowest level against the Yen since October.
(Research Desk, written by Ben Parkinson)