The Yen's Major Move
Wow ... did you see that yen move? In about five minutes it moved past the 80 mark to rest about roughly 78 yen to the dollar.
What fed it? Repatriation. The thinking is it will take a lot of yen to fund rebuilding in Japan. So many companies will have to liquidate non-Japan currency based assets to raise the yen-based funds. Traders decided to get ahead of that.
Camilla Sutton of Scotia Capital had a pretty good discussion about it this morning. Check it out, roughly half way in, although Ed Keon's comments aren't half-bad either ...
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm.
"Money in Motion Currency Trading" repeats on Saturdays at 7pm.