Yen up as China raises stamp tax on stock trading

Discussion in 'Trading' started by ASusilovic, May 29, 2007.

  1. The yen rose across the board Tuesday, reversing early losses after news that China's raising its stamp tax on stock trading triggered some unwinding of carry trades. The Xinhua News Agency reported that China will triple its stamp tax on equity trading to 0.3% to 0.1%, effective Wednesday. "With the Shanghai index hitting another record high last night, the latest move by the government is seen as a bid to clamp down on the overheated market," said Kathy Lien, chief strategist at "The hope is that the stamp tax will reduce the amount of trading, but with a tax of 3 in a thousand, the increase may only have a limited impact on the Chinese market in the long term." The euro was last down 0.1% at 163.49 yen, after earlier touching a record high at 164.29 yen. The dollar was down 0.1% at 121.52 yen