Yen rally threatens carry trade as investors reprice rate path
A sharp rally in the Japanese yen ahead of an expected Bank of Japan interest-rate hike next week is upending the carry trade, with investors reassessing the currency’s volatile outlook.
A blistering rally in the Japanese yen ahead of an expected interest rate hike from the Bank of Japan next week is upending the long-established carry trade as investors rethink the path ahead for the volatile currency. Early hints of capital repatriation and shifting expectations around the Bank of Japan’s policy path have added to the move, according to the source text.