Carry Trade Watch: Tokyo-based Forex Trading up 19.2% in April

July 27, 2007
By Ken Worsley

This just in from the Nikkei: In April, average daily forex trades in Tokyo surged to 240.3 billion dollars, up 19.2% from a year ago. Of that total, trades executed by non-Japanese entities accounted for 167.1 billion dollars, which was up 31% against April 2006.

Trading in the South African Rand, which provides far better interest rate and bond yields than the yen, was up 50% year on year.

Despite the boost in the amount of Tokyo-based forex trading, the Nikkei tells us that, “Tokyo trading still pales in comparison with Europe and the U.S. In London and New York, the figures came to 967 billion dollars and 487.9 billion dollars as of October 2006.”

Filed Under Exchange Rates, Forex, Japan