Yen Hits Four Year Low

The Yen hit a four-year low against the US Dollar yesterday, which has raised concerns that this low price could sway the market if the trend continues. The growing use of “carry” trades, in which investors borrow in currencies with low interest rates (i.e. the Yen) and invest in those currencies with higher rates such as the Australian Dollar and the New Zealand Dollar, have many analysts believing that these trades may be part of the reason that the Japanese Yen is reaching new lows despite a stable economy and a large potential for growth. Read More.....