Yen Carry Traders See Intervention as Selling Opportunity

The yen's recent surge following the U.S.-Japan joint currency market intervention has retreated back to the 160-per-dollar level, prompting some investors to resume 'yen carry trades'.

Borrowing yen to invest in higher-yielding assets is the strategy of choice for these investors, who believe that the authorities' 'rescue' has provided an opportunity to sell yen at better prices.

Ashwin Binwani, founder of Alpha Binwani Capital, moved to buy dollars and sell yen when the dollar-yen rate recently dipped to around 157.

'Intervention is a great opportunity to sell yen at higher prices,' he said. 'I'm not afraid of what the authorities do. The carry trade is too good a trade to miss.'