Currency Intervention From Japan & Switzerland, Protecting the Dollar from the Dollar (YCL, FXY, JYF, FXF, FXE, UUP)

Administrator — Mon, 01 Aug 2011 20:19:28 +0000

The Japanese Yen took a breather today on some similar news that we saw last week regarding intervention. The Nikkei News reported this afternoon that Japan was about to intervene to keep from further Yen appreciation coming against the U.S. Dollar. We saw a similar announcement last week that the Swiss Central Bankers warned that they would have to intervene if the Swiss Franc strength continued. Citizens love having a strong currency when they travel because everything is artificially cheap, but having an inflated value in a currency makes it difficult to sell goods and services into the international trade markets.

ProShares Ultra Yen (NYSE: YCL) was down 0.2% at $36.85 against a 52-week range of $29.76 to $37.40. CurrencyShares Japanese Yen Trust (NYSE: FXY) was down 0.2% at $127.87 against a 52-week range of $114.11 to $129.26. WisdomTree Dreyfus Japanese Yen (NYSE: JYF) is more of a money market rate Yen fund and it was down 1% at $33.34 versus a 52-week range of $30.12 to $34.11.

As far as the Swiss Franc, it hit another new high this morning per the ETF… The CurrencyShares Swiss Franc Trust (NYSE: FXF) was up 0.4% at $126.34 against a 52-week range of $93.57 to $127.99.

Will the European Central Bank be the next to intervene? Can it even afford to worry about exchange rates with all of its woes with the lands of the PIIGS? As far as the Euro ETF, the CurrencyShares Euro Trust (NYSE: FXE) fell 0.7% to $142.00 versus a 52-week range of $125.71 to $148.81.

The PowerShares DB US Dollar Index Bullish (NYSE: UUP), which is meant to effectively rise and fall with the U.S. Dollar Index, was up 0.55% at $21.15 today. We have brought this up before about a speculative ‘flight to safety bubble’ being seen in the Swiss Franc. Perhaps the same is happening in the Yen.

It turns out that a race to zero in the world of currencies doesn’t do anyone any good if the Americans can’t afford to buy manufactured goods from nations.

JON C. OGG

Filed under: ADR, Currency, ETF, Financial Stocks, International Markets Tagged: FXE, FXF, FXY, JYF, UUP, YCL

WisdomTree Launching Currency Income ETF’s (WSDT, CYB, ICN, BZF, JYF, EU)

247wallst — Thu, 01 May 2008 13:51:18 +0000

WisdomTree Investments, Inc. (Pink Sheets: WSDT) and The Dreyfus Corporation, a BNY Mellon Asset Management Company, announced the launch of five WisdomTree Dreyfus Currency Income ETFs on the NYSE Arca.

The ETFs are actively-managed and designed to earn current income that reflects money market rates that are available to foreign investors in the specific region. Additionally, they will be exposed to changes in non-U.S. currencies values compared to the U.S. dollar. Being actively-managed, the ETFs will have greater flexibility but still maintain the transparency that makes ETFs so attractive. This fund targets short-term, investment grade instruments and as a result, the share price is expected to be volatile.

The funds are expected to commence trading on Tuesday, May 13, 2008. The ETFs are listed below:

WisdomTree Dreyfus Chinese Yuan Fund (NYSE Arca: CYB)
WisdomTree Dreyfus Indian Rupee Fund (NYSE Arca: ICN
WisdomTree Dreyfus Brazilian Real Fund (NYSE Arca: BZF)
WisdomTree Dreyfus Japanese Yen Fund (NYSE Arca: JYF)
WisdomTree Dreyfus Euro Fund (NYSE Arca: EU)

Rachel Lopez
May 1, 2008

24/7 Wall St. » JYF

Currency Intervention From Japan & Switzerland, Protecting the Dollar from the Dollar (YCL, FXY, JYF, FXF, FXE, UUP)

WisdomTree Launching Currency Income ETF’s (WSDT, CYB, ICN, BZF, JYF, EU)