Yen Watch: A Week of Volatility and Uncertainty
Date: September 3, 2024, 3:05 PM GMT
Executive summary: The Japanese yen has been experiencing a period of volatility in recent weeks, driven by a confluence of factors including the Bank of Japan’s (BOJ) potential shift in monetary policy, concerns about the carry trade, and global economic uncertainty. This week, the yen has seen both gains and losses, with investors closely watching developments in the US and Japan for clues about the future direction of the currency.
Yen Strengthens as BOJ Hints at Rate Hikes
Ueda Reiterates That BOJ Will Lift Rates If Outlook Realized
Bank of Japan Governor Kazuo Ueda reiterated Tuesday that the central bank will continue to raise interest rates if the economy and prices perform as expected. This statement, made during a speech at a meeting of the BOJ’s Policy Board, has boosted the yen, as investors interpret it as a signal that the BOJ is moving closer to exiting its ultra-loose monetary policy.
Forex Factory (4 hours ago)
Carry Trade Risk in Focus as Ueda Comments Boost Yen
Ueda’s comments have also raised concerns about the carry trade, a strategy that involves borrowing in a low-interest-rate currency like the yen and investing in higher-yielding assets. If the BOJ raises rates, the carry trade becomes less attractive, potentially leading to a sell-off in the yen.
Bloomberg (5 hours ago)
T. Rowe Manager Who Predicted Yen Shock Sees Another One Coming
Arif Husain, a fixed income manager at T. Rowe Price, has warned that the yen could be in for another sharp decline, as the BOJ’s shift in monetary policy could lead to a sudden unwinding of the carry trade. Husain accurately predicted the yen’s weakness last year, and his latest warning has caused a stir in the market.
Bloomberg (6 hours ago)
Yen Volatility Amidst Economic Uncertainty
Dollar Nudges at Two-Week Highs; Yen Grabs Spotlight
The dollar hovered near a two-week high on Tuesday ahead of a slew of economic data, including Friday’s U.S. payrolls, that could influence the size of an interest rate hike by the Federal Reserve. However, the yen has remained a focus for traders, with its recent volatility prompting investors to closely monitor the BOJ’s next move.
Reuters (4 hours ago)
The Dollar Is Bid But Ueda Lends Support To The Yen
The dollar is bid as the upside correction that began last week continues today. Comments by BOJ Governor Ueda have reiterated his intention to raise rates in the future, which has lent some support to the yen.
Seeking Alpha (4 hours ago)
Carry Trade Concerns and Yen’s Future
EBC Markets Briefing | Swiss franc carry trades could blow up
The Swiss franc is gaining traction as a funding currency for carry trades, with investors shifting away from the yen due to its recent volatility. However, there are risks associated with this shift, as the Swiss franc could also experience a sudden reversal if the global economic outlook deteriorates.
EBC Financial Group (6 hours ago), Finimize (2 hours ago)
Investors Favor Swiss Franc Over Yen For Carry Trades
The Swiss franc gains ground as a preferred funding currency due to its lower interest rates and safe-haven appeal amidst yen volatility.
Finimize (2 hours ago)
USD/JPY Forecast – US Dollar Pulls Back Against The Yen
The US Dollar pulled back a bit against the Japanese yen, as we continue to bounce around and look for a certain amount of stability in what could be another iteration of the carry trade – assuming the Federal Reserve doesn’t raise interest rates too aggressively.
FXEmpire (2 hours ago)
Yen in the News: A Mixed Bag
Japan’s Nikkei Stock Average Slips as Yen Gains; Higher Bond Yields Lift Banks (Update 1)
Japan’s Nikkei share average edged lower on Tuesday as a firmer yen weighed on investor sentiment, although banks provided a bright spot, with higher bond yields lifting their shares.
The Japan News (8 hours ago)
Japanese companies mark record combined profits in April-June
Nonfinancial companies’ internal reserves at the end of fiscal 2023 grew 8.3% from a year earlier, topping ¥600 trillion for the first time.
The Japan Times (7 hours ago)
Nikkei Dips on Firmer Yen, China Banks Drag on Hang Seng
Investors remained cautious for a second successive day while China’s property woes saw its banks take a profits hit.
Asia Financial (5 hours ago)
Yen in the Digital Realm
‘More BUCK for your YEN. : r/OkinawaJPYtoUSD’
More BUCK for your YEN. NO fees, NO commission, straight exchange position of the day’s rate. JPY to USD. 500 USD minimum. Naha only. Safe. Reliable. Proven…
Reddit (8 hours ago)
r/AnimeFigures – New Lalatina figure! 21500 yen
If you haven’t noticed, the Yen has recovered 20 cents on a US Dollar over the past few weeks. … might pull the trigger; so cheap on Amazon at 11,000 yen.
Reddit (8 hours ago)
Yen in Video: Analyzing the Trends
US Dollar Pulls Back Against The Yen: Forecast & Technical …
… yen, as we continue to bounce around and look for a certain amount of stability in what could be another iteration of the carry trade – assuming the Federal …
YouTube (2:27, 2 hours ago)
Carry Trade Risk in Focus as Ueda Comments Boost Yen
… if the economy and prices perform as expected by the BOJ, a comment that supported further gains in the yen. Bloomberg’s Ven Ram reports. (Source: Bloomberg)
Bloomberg News (1:20, 5 hours ago)
Pound Weakness & Yen Strength!
… Yen), two significant forex pairs. With our comprehensive forex risk management insights and dedication to continuous improvement, TetraFX aims to provide …
YouTube (0:37, 8 hours ago)
The Yen’s Future: A Look Ahead
The yen’s future remains uncertain, with a number of factors likely to influence its direction in the coming weeks and months. The BOJ’s monetary policy stance will be a key driver, as will global economic conditions and investor sentiment. Traders will be closely watching for any further hints from the BOJ about its plans for interest rates, as well as developments in the US economy and the global financial markets. The yen’s volatility is likely to continue in the short term, making it a currency that investors will need to carefully monitor.
