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Yen poised for best weekly gain in three months as carry trades unravel

The yen (USDJPY) dominated currency markets this month, climbing to a near three-month high. This is a major shift from its 38-year low at the start of the month. This large move follows suspected interventions by Tokyo in early July, which led to an unwinding of profitable carry trades. Traders had borrowed the yen at low rates to invest in dollar-priced assets for higher returns. The interventions caught traders off guard, leading to a swift adjustment. The rapid yen rally suggests a potential for consolidation soon. However, with declining risk assets and data suggesting potential U.S. rate cuts, the yen could appreciate further. Read more to find out about why yen best weekly gain.

more about jpy intervention

Disclaimer:

Traders should be wary of the potential for sudden market shifts triggered by other political and economic developments, where proper risk management is vital.

Publication date:

2024-07-27 13:06:04 (GMT)

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