Japanese Yen Plunges in Forex Trading

Government bailout of Fannie and Freddie reuslt in lower yen in currency tradingThe Japanese yen is plunging rather dramatically in forex trading on the news that the U.S. government is taking over Fannie Mae and Freddie Mac. The announcement of the bailout of the government sponsored enterprises came over the weekend and is affecting markets today.

The yen is affected in currency trading on the FX market due to the fact that the news is expected to spark a rally in global stock markets, creating a bit better risk appetite. This could mean a return — at least briefly — to the popularity of the yen carry trade.

This is a change in direction from Friday, when the yen was seeing success on the FX market.

See Also

• More on the Japanese Yen in Forex Trading
  Why the yen is faltering in currency trading
• Jaoanese Yen in Forex Trading
  Currency trading on the FX market

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