Yen Carry Trade Is Back; Where Will The Money Go?

Japan and the U.S. say they are coordinating closely and plan “bold” and “decisive” action against disorderly yen moves, signaling potential FX intervention or policy pressure. While no specific rate or dollar/yen figures were provided, the joint commitment raises the odds of near-term yen support and volatility around USD/JPY.

Analysis

Japan and the U.S. say they are coordinating closely and plan “bold” and “decisive” action against disorderly yen moves, signaling potential FX intervention or policy pressure. While no specific rate or dollar/yen figures were provided, the joint commitment raises the odds of near-term yen support and volatility around USD/JPY.