Sun sets on yen carry

Carry trades

The day the Bank of Japan (BoJ) signaled the end of its five-year quantitative easing strategy - March 9 - also marked the dusk for the lucrative yen carry trade, say dealers. Most reckon the BoJ could raise interest rates by 25 basis points as early as July, the first rate rise in five years. This has precipitated the unwinding of the yen carry trade in recent months, and is likely to put further pressure on the Australian dollar, New Zealand dollar and other currencies that made the contract h