Overseas investors had been anticipating foreign bond
buying (by Japan), but that key pillar for boosting the dollar against the yen is now gone," said Minori Uchida, head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ.
The wealth effect comes about because the dollar depreciation raises the dollar value of foreign bond
holdings (F/e [arrow up]).
This "suggests that a reversal may be likely, as this scale of selling of foreign bonds
is unprecedented and may well lead to renewed foreign bond
purchases by Japanese investors if and when the U.
Attjariwafa Bank and BMCE Bank, the two biggest Moroccan banks, both plan to raise $500 million through foreign bond
Do people have more foreign bond
(investment) than they think?
If a foreign bond
pays 15%, but its currency is devalued by 20%, American investors wind up losing money.
The husband owned a foreign bond
in his name alone during 2004, valued at about $7,500.
The increase was partly due to the rise in prices of Japan's foreign bond
holdings, a ministry official said, without specifying which bonds they were.
Tehran completes its first foreign bond
issue since the 1979 Islamic Revolution, attracting interest from institutional investors in the Gulf region and Europe.
THE GOVERNMENT is planning another e1/41 billion foreign bond
issue in the new year, Finance Minister Charilaos Stavrakis revealed yesterday.
The yen strengthened after Finance Minister Taro Aso denied the country was considering foreign bond
buying, seen as a measure for weakening the yen.
On Monday, the yen weakened after Prime Minister Shinzo Abe mentioned foreign bond
buying as an option for the Bank of Japan to further ease monetary policy.