- MarketPulse - https://www.marketpulse.com -

Investors Return to Yen-Based Carry Trade

With Japan’s benchmark interest rate holding steady at 0.1 percent for over two years now, investors in Japan are turning to foreign investments in the search for better yields. Investors outside Japan are also entering into carry trades [1] selling the yen in order to buy other, higher-yielding currencies.

“The prospect of any rate rise in Japan is so far away that at some point over the next year it will return as a funding currency,” noted Greg Gibbs, a currency strategist at RBS Australia in Sydney.

Source: Bloomberg [2]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Scott Boyd

Latest posts by Scott Boyd (see all [5])