Japanese Yen Buries U.S. Dollar in Forex Trading

Panic ensues on Merrill, LehmanRisk aversion is the story today as the carry trade unwind and the yen makes an astounding rally against the U.S. dollar in forex trading on the currency market.

The news spurring this revival for the yen in currency trading is two-fold, from two of the biggest investment banks in the U.S.:

1. Merrill Lynch has sold itself to Bank of America.
2. Lehman Brothers has filed for bankruptcy.

The result is that the U.S. stock market is in turmoil, and investors are running for cover in certain safe haven investments.

This is includes unwinding the carry trade at a rapid rate and giving a boost to the Japanese yen in forex trading.

See Also

• More on Merrill and Lehman
  U.S. markets and bank failures
• Japanese Yen in Forex Trading
  Forex trading on the currency market

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