SYDNEY, Dec 5- The yen held off a five-year trough on the euro and a six-month low versus the dollar on Thursday following a whippy session overnight that lacked conviction as key event risks including U.S. jobs data loomed.» Read More
The yen held gains against the U.S. dollar and euro on Wednesday as investors kept shedding risky positions after a slide in a U.S. stock index gave a reminder that confidence in the credit market has yet to be restored.
The yen gained broadly Tuesday as jitters about global credit conditions led investors to shed risky assets funded by borrowing in the Japanese currency
The dollar inched higher against the euro Monday after a new report said that U.S. economic growth was set to pick up slightly despite misgivings about the housing market.
The dollar fell broadly Friday after the Federal Reserve slashed the interest rate it charges on loans to banks, and said economic growth could slow in light of tightening credit markets.
Keep an eye on big commercial banks like Citi, JP Morgan and Bank of America: They have extensive retail banking operations and are far more diversified and better at laying off risk (often to foreign banks) than the investment banks
The yen had its biggest one-day gain versus the dollar in almost nine years Thursday, as investors unwound risky trades financed with borrowed yen, on fears of a global funding crisis. The yen soared against all major currencies and hit its strongest level since November against the euro.
The dollar rose against the euro, and the yen rallied on Wednesday after investors cut exposure to carry trades as losses in the U.S. subprime mortgage market widened.
Joseph Stiglitz, Professor at Columbia University and 2001 Nobel Prize Winner explains how the central bank's stimulus program will improve the debt to GDP ratio if it successfully ends deflation.