Yen rebounded from record low after Japan´s Finance Minister Koji Omi spoke
The Dollar slipped against the Yen on Monday and Tuesday with investors growing nervous about more hedge fund failures related to rising US sub-prime mortgage defaults. In times of increased risk aversion, investors tend to sell high-yielding but risky assets funded by the low-yielding Yen. Japan’s Finance Minister Koji Omi comments echoed remarks by officials at Group of Seven meetings in the past year referring to carry trades and suggested some concern about the pace of the Yen’s slide.