Midday Musings: Dollar Pays for Yen's Annual Fling

Even the mellifluous tones of Federal Reserve Chairman Alan Greenspan, who was more upbeat in today's part two of his semiannual congressional testimony, failed to stem the dollar's recent decline vs. the yen.

The greenback suffered its biggest one-day move vs. the yen since October 1998 on Thursday, hitting its lowest levels since Dec. 14 at 126.40 yen.

Currency traders said those short the yen via direct bets or through so-called carry trades -- in which borrowed yen are reinvested in higher-yielding dollar assets -- were scrambling to cover positions. ...