Thursday, January 17, 2008

Stronger Yen Is Bad News For Japanese Economy

Dollar is trading against the Yen at its weakest point and is a cause for japanese economy, which is principally export oriented. This weakness in dollar is also making matters worse for equity, commodity and currency markets with huge volatility at the centre stage. This can't continue for long, as this turmoil in currency, credit, and equity markets can derail fantastic economic growth that entire world has been witnessing for the past 4 years. Emerging markets too have become very volatile with a weakinsh bias, slowdown in mergers and aquisitions, lot of new initial public offerings in china, india is making these markets weak and volatile. With market participants looking for return of sanity in financial markets, most investors/traders feeing deep pain due to erosion in their investments, a quick and sharp recovery is not far for equity markets.