Japan's top FX official, Atsushi Mimura, warns of yen carry trade monitoring amid potential volatility and intervention possibility.
Japan's top FX diplomat, Atsushi Mimura, announced that authorities are monitoring the market for potential yen carry trades, which could increase volatility. These trades involve borrowing yen at low interest rates to invest in higher-yielding currencies. While this practice has historically contributed to the yen's decline, recent unwinding has led to its rebound. Mimura stated that intervention may occur if currency fluctuations deviate significantly from economic fundamentals.
September 21, 2024
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