UK PRESS: The yen may be about to re-establish itself as the carry trade
funding currency of choice, the Financial Times reported at the weekend,
with one reason cited for the thinking being a shift in bank lending
rates that this week showed it was cheaper to borrow in yen than in
dollars for the first time since August. The three-month dollar Libor
rate, the benchmark inter-bank lending rate, which, very unusually,
spent seven months lower than the equivalent yen Libor rate, has crossed
back into higher territory again, the report says citing analysts. The
crossover means that selling the yen is again a cheaper way to fund
carry trades.