Thursday, May 31, 2007

Depressed dollar/yen vols lure bargain hunters

(Reuters) - Option dealers in Tokyo cited a hedge fund buying on one-year implied volatility when it fell to an all-time low of 6.6 percent in mid-May, suggesting that vols may have bottomed out for the time being.




Implied volatility, a gauge of how much the options market thinks a currency pair will move over a given time period, has tumbled since early May as expectations for a Federal Reserve interest rate cut have receded, pushing the dollar back towards a 4-1/2-year peak of 122.20 yen hit in January.


Read more at Reuters.com Hot Stocks News

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