Yen rally threatens carry trade as investors reprice BoJ path
A sharp rally in the Japanese yen ahead of an expected Bank of Japan interest rate hike next week is disrupting the carry trade as investors rethink the currency 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 and lucrative carry trade, as investors rethink the path ahead for the volatile currency. Early hints of capital repatriation have helped fuel the move, according to the source text.