Author: Aiko Fujita

Aiko covers Japan's corporate governance reforms, its aging-economy challenges, and the slow but real return of foreign investment to Tokyo's markets. Raised in Osaka, she started her career at a domestic business paper before moving into English-language reporting to reach a wider audience. Her interviews are known for a patience that gets sources to say more than they planned to. Outside work, she practices calligraphy and says the discipline it demands isn't so different from editing a tight paragraph.

Yen Carry Trade Faces Renewed Pressure as Japan Rate Hike Bets Strengthen and Currency Hits Seven-Month High

Japan

TOKYO, September 9 — The yen’s rise to a seven-month high is putting renewed focus on one of the most widely used strategies in global finance: the yen carry trade. The strategy has allowed investors for years to borrow Japanese currency at relatively low interest rates and deploy the funds into assets denominated in currencies offering higher returns. But expectations that the Bank of Japan could accelerate interest-rate increases, potentially as soon as its meeting next week, are weakening the appeal of the trade. Here is how the yen carry trade works, why it became so important to international investors…

Read More