There is some really weird shit going on in the international currency exchanges.

[Electric Monk]

Could someone help make sense of this?

[Sedona]

1. bolstering up the yen in wake of quake/tsunami/meltdown

http://www.reuters.com/article/2011/03/18/markets-forex-idUSL3E7EI0AA20110318?pageNumber=2

[girl gone mad]

3. Trying to bolster down the yen, actually.

Demand for yen shot through the roof as the carry trade collapsed in the wake of the earthquake/tsunami/meltdown.

Basically, lots of people borrow in yen to buy currencies/bonds with a higher yield. This only works when the exchange rate stays stable. Traders are afraid that Japan will need to raise interest rates dramatically to borrow and the higher exchange rate will turn all of those carry trades into losses. All kinds of automatic stops were being triggered. BOJ intervened.

[dixiegrrrrl]

4. I do so much appreciate your the clarity of your explaining that.

THANK you.
:toast:

[pinboy3niner]

2. Yen Drops on G-7 Intervention as UN Libya No-Fly Vote Spurs Oil

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/18/bloomberg1376-LI8AFI07SXKX01-420LPPKRMGEED1KSCTQ2OBLBT8.DTL#ixzz1Gw1Mb1qi

[Electric Monk]

5. Thanks for that link. Best explanation I've seen so far. nt

[Electric Monk]

6. It's getting weirder. Now the Yen is way up. These are like more waves.

Bigger up, bigger down, bigger up, yadda yadda.

High level traders are gambling bigtime.