Tags: Cuban | yen | dollar | currencies

Mark Cuban: Currency Markets Have ‘More Transparency, Information’ than Stock Markets Do

By Dan Weil   |   Friday, 26 Apr 2013 09:22 AM

Billionaire investor Mark Cuban made a big bet against the yen, and it has paid off.

"In early December, I went and took every penny of debt that I had with the Dallas Mavericks [the NBA basketball team Cuban owns] and personal debt and everything and converted it to a yen loan when I think it was in the mid-80s,” he told CNBC.

The result: “I've been really happy with it," Cuban said.

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The dollar has soared 19 percent to 98.31 yen Friday from 82.38 yen Dec. 10. Cuban would convert his dollars to yen to pay back the loan, and now he is getting more yen for each dollar.

That lessens the cost of his loan. At this point, he’s almost certainly making money on his borrowing.

"Where I've made my biggest trades have been in currencies, because there's a lot more transparency and a lot more information available than there is with stocks," Cuban said. "So, it's just a more efficient market, in my mind."

Currency moves are largely dictated by macroeconomic developments, which are all publicly known.

Meanwhile, foreign exchange traders are focusing on what could push the dollar above 100 yen.

"If the U.S. data shows promise of perking up, then we have a stronger case for a breakout through 100. That's probably the only reason that the move has been capped," Boris Schlossberg, managing director at BK Asset Management, told CNBC.

Rajiv Biswas, chief economist for Asia Pacific at IHS Global Insight, predicts the dollar will rise “into the 100-110 range in coming months,” Bloomberg reported.

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