{"id":5835,"date":"2007-03-21T00:00:00","date_gmt":"2007-03-21T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"yen-exchange-rate-and-hedge-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2007\/yen-exchange-rate-and-hedge-funds.html","title":{"rendered":"Yen exchange rate and hedge funds"},"content":{"rendered":"<table width=\"418\" cellspacing=\"0\" cellpadding=\"0\" border=\"0\" class=\"TableClas\">\n<tr>\n<td height=\"9\">    <\/td>\n<\/tr>\n<\/table>\n<table width=\"506\" height=\"239\" cellspacing=\"0\" cellpadding=\"0\" border=\"0\" class=\"TableClas\">\n<tr>\n<td>      India &#8211; The yen and hedge funds are at centre stage, but what will happen if China diversifies into holding the yen.    <\/td>\n<\/tr>\n<tr>\n<td height=\"5\">      &nbsp;    <\/td>\n<\/tr>\n<tr>\n<td>      In an earlier article, I had referred to the large bets of hedge funds in the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201ccarry trade\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d, estimated at around $ 100 billion. The last few weeks seem to have witnessed hedge funds unwinding      carry trades by buying the yen, even as Japanese investors continue to sell the domestic currency to invest abroad. Perhaps the most profitable investments have been in the New Zealand dollar:      not only was\/is there a huge \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201ccarry\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d to be earned in interest differential, but the dollar has appreciated from JPY 55 to JPY 80 over the last five years!    <\/td>\n<\/tr>\n<tr>\n<td height=\"5\">      &nbsp;    <\/td>\n<\/tr>\n<tr>\n<td>      Carry trade is, however, only a small proportion of the hedge fund industry which now commands investment capital of the order of $ 1.5 trillion \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d with leveraging, the total investment in risky      strategies, could be of the order of perhaps $ 4 trillion, a massive sum of money by any standards. With growing size, the industry is attracting more regulatory attention. In the US, new      guidelines for the industry were issued in the last week of February but, overall, regulators prefer a light touch believing that hedge funds \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201care good for the markets\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d (EU internal market      commissioner) and \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201chave contributed of the financial system\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d (G7).    <\/td>\n<\/tr>\n<\/table>\n<p><strong><a href=\"http:\/\/news.google.com\/news\/url?sa=T&amp;ct=us\/4-0&amp;fd=R&amp;url=http:\/\/www.business-standard.com\/common\/storypage.php%3Fleftnm%3Dlmnu5%26subLeft%3D%26autono%3D278067%26tab%3Dr&amp;cid=0&amp;ei=Jof-RbLOJbyWsgGV9LCnCw\">Read Complete Article<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India &#8211; The yen and hedge funds are at centre stage, but what will happen if China diversifies into holding the yen. &nbsp; In an earlier article, I had referred to the large bets of hedge funds in the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201ccarry [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5835","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5835"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5835\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}