Yen continued its fall today while the high-yielding currencies like Australian dollar, Great Britain pound and other currencies were sold for Japanese yen to secure the risks connected with carry trading.
Another carry trade crisis victim - South African rand saw its bad times during the past week. ZAR closed on its lowest rate against Japanese yen (which can be easily called the “favorite” of the week) since the mid September - 15.8549 yens per rand.
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.
Bank of Japan decided to leave its monetary unchanged on today’s meeting upon releasing its monthly statement on the Japanese economic development. BoJ also left no signs of possible interest rates hike in the near future, leaving carry traders with the opportunity to continue using yen as the selling currency.