Forex News

Recent talks by Federal Reserve Vice Chairman Donald Kohn about possible interest rates cut by the Fed added confidence to the Forex market traders that rely on buying risky currencies with the cheap low risk Japanese yen - so called carry traders.

Japanese yen restarted its falling against other world currencies today (even against the dropping dollar) as the risk hungry investors begin to reenter carry trades. While the Nikkei 225 index gained a little more than 1 percent - first rising day after four consecutive losing days, Yen lost more than 1 percent of its value to the high-yielding currencies.