And the winner is…..
The clear winner this of the 2008 double-edged sword on the currency front is the Japanese yen. The unwind of the carry trade from which investors sold yen to buy higher yielding currencies continues as does the flight to safety. The yen had its biggest gain in over 20 years against the dollar, while its 36% appreciation against the Australian dollar stands out compared to an appreciation by the US dollar of 21% against the Aussie unit. The problem with being a winner in this sense is that