Sun sets on yen carry
The likelihood that the Bank of Japan could soon raise interest rates has triggered an unwinding of yen carry trades in recent months. With the yen expected to strengthen sharply, could the winds of change precipitate a major blow-up?
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
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