The following is taken from a very good article by Gary Dorsch which was published today at http://www.financialsense.com/fsu/editorials/dorsch/2008/1008.html
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With the Bank of Japan opting to leave its rates steady, “yen carry” traders responded by hammering the Australian dollar to 65-yen, a five-year low, plunging 20% in just three-days, while governments and central banks across the world scrambled to rescue banks from collapse by guaranteeing bank deposits, and injecting tens of billions of dollars to thaw-out frozen credit markets. Unwinding of “yen carry” trades also slammed South Korea’s won to 1,398 against the dollar, the lowest in a decade, amid a stampede from the Kospi index.
