JPY Daily News

JPY Loses Value as a By-Product of Reinvigorated Carry Trades

The JPY's recent strength has been momentarily curbed these past few days. As Asian stock markets rally, investors are beginning to re-open their carry trades by buying up higher yielding currencies, funded with Japanese Yen. These carry trades have become more attractive following the Bank of Japan's (BoJ) decision to cut interest rates from 0.50% to 0.30% last week. As a result, traders have witnessed a steady depreciation in the value of the JPY.


As for the coming week, traders have little news emanating from the Japanese economy. As such, it would be wise to pay close attention to the European Central Bank's interest rate decisions as this may affect the direction of JPY-funded carry trades, and as a by-product, could also alter the movement of the JPY against the EUR in a bullish direction. The Yen could then lose value consistently to the greenback as traders invest in the USD with their JPY, instead of investing in the shaky European economies.

Current Time: 05/27 03:09 GMT

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