1. It is first time in history since 1995 that Yen has breached 100 per dollar mark.
2. Now a new economic crisis awaits the world as it could trigger carry trade unwinding.
3. One can understand carry trade as an arbitrage strategy, where one buys a high interest yielding currency and sells a low yielding currency and as a result one is able to earn by virtue of the difference in the interest rates prevailing.
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