Identify One of the Major Reasons Behind the Decline in the Dollar-Yen

Multiple Choice

Identify one of the major reasons behind the decline in the dollar-yen carry trade during 2008-09.

A) Increase in risk appetite making the carry trade less attractive
B) Increase in the value of Japanese yen against the U.S.dollar
C) Increase in interest rate differentials as Japanese rates came down
D) Decrease in interest rate differentials as the U.S.rates went up