Latest / International Business with Fexingo: Global Trade, Cross-Border Deals, and Multinational Operations
How the Yen Carry Trade Unwind Is Reshaping Global Finance
Lucas and Luna examine the dramatic unwinding of the yen carry trade as the Bank of Japan finally raises rates. With the yen strengthening sharply and the dollar-yen cross moving past 160, an estimated $1 trillion in carry positions are at risk. They discuss how this is already hitting emerging-market currencies, from the Mexican peso to the Korean won, and why Japanese insurance companies and pension funds are now repatriating capital. The episode also covers the broader implications for U.S. Treasury yields and global liquidity, with specific data points on the trade-weighted dollar and…
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