The era of carry trades is over, even with the yen at 1 dollar = 140 yen, according to Amundi.
September 7, 2024, 2:29 JST
According to the chief strategist of Amundi, a European asset management company, there is further room for the yen to rise. The dissolution of yen carry trades is expected to continue in the future.
Monica Defend, head of Amundi Investment Institute, pointed out that the Bank of Japan's interest rate hike and policy shift in July would be a game-changer for the yen. "The fair value of the yen has been 140 yen so far, and we still think so," she continued.
In an interview in Chernobio, Italy, Defend stated that while the yen will continue to be used as a funding currency for the time being, "we believe that the era of carry trades is over."
According to the chief strategist of Amundi, a European asset management company, there is further room for the yen to rise. The dissolution of yen carry trades is expected to continue in the future.
Monica Defend, head of Amundi Investment Institute, pointed out that the Bank of Japan's interest rate hike and policy shift in July would be a game-changer for the yen. "The fair value of the yen has been 140 yen so far, and we still think so," she continued.
In an interview in Chernobio, Italy, Defend stated that while the yen will continue to be used as a funding currency for the time being, "we believe that the era of carry trades is over."
As the Bank of Japan advances its interest rate hike cycle by 2025, "we will see a certain level of repatriation of funds," said Defend.
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