Traders Resume Yen-Dollar Carry Trade As Bank of Japan Pledges No Rate Hikes During Market Volatility
Portfolio Pulse from Piero Cingari
Traders have resumed the yen-dollar carry trade after the Bank of Japan (BOJ) pledged not to hike interest rates during market volatility. The Invesco CurrencyShares Japanese Yen Trust (NYSE: FXY) fell over 1.9% as a result. The BOJ's dovish stance has alleviated fears of immediate rate hikes, which had previously caused market turmoil.
August 07, 2024 | 2:53 pm
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The Invesco CurrencyShares Japanese Yen Trust (FXY) fell over 1.9% as traders resumed the yen-dollar carry trade following the BOJ's pledge not to hike interest rates during market volatility.
The BOJ's commitment to maintaining low interest rates during market volatility has led to a decline in the yen, directly impacting FXY. This move is likely to continue putting downward pressure on FXY in the short term.
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