Yen-Dollar Carry Trade Shakes Ahead Of Powell's Speech As BoJ's Ueda Hints At Continued Rate Hikes
Portfolio Pulse from Piero Cingari
The yen-dollar exchange rate experienced volatility following hawkish remarks from BoJ Governor Kazuo Ueda, who indicated potential rate hikes if inflation aligns with targets. The yen, tracked by the Invesco CurrencyShares Japanese Yen Trust (NYSE:FXY), gained 0.8% before slightly paring back. The BoJ's stance contrasts with the Fed's expected rate cuts, impacting the yen-dollar carry trade.
August 23, 2024 | 1:52 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXY) saw a 0.8% gain amid market volatility following BoJ's hawkish remarks on potential rate hikes. This reflects the yen's strengthening against the dollar.
The BoJ's indication of potential rate hikes led to a strengthening of the yen, which is directly tracked by FXY. This caused FXY to gain 0.8%, reflecting the market's reaction to the BoJ's stance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80