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Japanese Yen Dominates as DJIA Falls 2.4%, S&P 500 Plummets 3.1%
Monday, 22 June 2009 21:42:26 GMT  |  Terri Belkas, Currency Strategist
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The Japanese yen dominated on Monday as risk aversion sent carry trades and equities tumbling, with the DJIA closing down 200 points at 8339.01.  That said, sharp moves like this tend to see at least a brief period of consolidation the next day, but going forward there is potential for risky assets to continue falling lower. While 10 of the nation’s biggest banks have returned $68 billion worth of TARP funds, there are still indications that not all is equal among US banks. Indeed, according to a press release published by the FDIC on May 27, their "Problem List" of troubled banks grew during the first quarter “from 252 to 305 institutions, and total assets of problem institutions increased from $159 billion to $220 billion.” As a result, it’s important to keep the situation in perspective, as there are still significant downside risks to the health of the financial sector and the economy at large.

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