Headwinds against yen carry, expansion of yen buying from the view that the Japan-US monetary policy is near a turning point
2024/7/25 12:10 JST (some excerpts)
The yen short is shrinking, and US monetary easing will soon begin - Amundi
DBS pointed out a reversal in carry trade, and yen bears are uneasy
The view that the Japan-US interest rate difference will finally shrink has intensified, and signs of a change in the depreciation trend of the yen are beginning to be seen in the foreign exchange market.
The yen exchange rate rose further against the dollar on the 25th, and the price rose by 5% or more from the low price against the dollar (161 yen 95 sen) for the first time in about 38 years set on the 3rd. Yen buying interventions by the government and the Bank of Japan, elimination of global carry trade, and reduction of bets on depreciation of yen by hedge funds are increasing the repulsive force.
The yen short is shrinking, and US monetary easing will soon begin - Amundi
DBS pointed out a reversal in carry trade, and yen bears are uneasy
The view that the Japan-US interest rate difference will finally shrink has intensified, and signs of a change in the depreciation trend of the yen are beginning to be seen in the foreign exchange market.
The yen exchange rate rose further against the dollar on the 25th, and the price rose by 5% or more from the low price against the dollar (161 yen 95 sen) for the first time in about 38 years set on the 3rd. Yen buying interventions by the government and the Bank of Japan, elimination of global carry trade, and reduction of bets on depreciation of yen by hedge funds are increasing the repulsive force.
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codeOZ(家長) : If you're throwing and selling assets right now, it's a carry trade, but is this the reason all asset classes are cheap? If that's the case, I wonder if there won't be a stock rebound until it settles down.