Beware the yen hedge
MARKET NEWS
In a new weekly series, top forex analysts cast their eyes over the major currencies. This week, Tony Norfield, right, global head of FX strategy at ABN Amro in London, warns investors about the risks of hedging the yen
Last week, Allied Irish Banks revealed a big hole in its P&L caused by a trader who had been short dollar-yen. Getting the volatile yen wrong is very costly, but forecasting the next move is not going to get any easier.
The case for a bearish view of the yen is clear. Japan’s
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