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Report: Soros Lost $600 Million on Yen-Dollar Trading

February 27, 1994

NEW YORK (AP) _ Financier George Soros suffered a $600 million loss on Feb. 14, the first full day of currency dealings after trade talks between the United States and Japan collapsed, according to a published report.

The New York Times, in a report Saturday, quoted a spokesman for Soros’ Quantum Group as saying the loss erased nearly 5 percent of the fund group’s $12 billion in assets.

Soros bet the wrong way on the direction of the Japanese yen’s value against the dollar. The losses affected six Quantum trading and real estate investment funds.

Soros had projected that the yen would continue to fall against the dollar. But trade talks broke down on Friday, Feb. 11, and the following Monday, the yen surged as traders concluded that Washington would seek to push it up to narrow the U.S. trade deficit.

The dollar closed in New York that day at 102.20 yen, down from 107.18 yen the previous Friday.

A year and a half ago, Soros bet correctly on a big fall in the British pound and made a $1 billion profit.

The Quantum Group is a private collection of investment funds registered overseas and closed to Americans.

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