Yen Carry Trade
On 5th August, 2024, major global stock markets saw their steepest decline in decades, triggered by the unwinding of the yen carry trade, compounded by ongoing concerns over a potential US recession and geopolitical tensions in West Asia.
Why is Yen Trade Unwinding?
- Higher interest rates in Japan led to the yen gaining strength against the dollar and most other emerging economy currencies.
- Recently, yen’s exchange rate, that is, how many dollars or rupees does one get for one yen – strengthened against currencies like dollar, real, rupee, peso, etc.
What is Carry Trade?
- A carry trade is a hugely popular ....
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