JPY Back As Funding Favorite - RBS

0837 GMT [Dow Jones] The JPY is coming back to its more normal place as the preferred funding currency for carry trades, notes RBS. Contributing factors have been the BOJ expanding quantitative easing and Japan's front end yields falling while rising in all other major economies. With the Japanese government setting ambitious long-term GDP growth targets it will be pleased that it has been able to turn sentiment around to a weaker JPY, says RBS, and sustained weakness may be a feature in the first months of 2010. USD/JPY trades at 92.93, from a near 4 month high of 93.22 seen earlier Monday. (GST)

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