USD YEN (A Key Factor Now Globally)
Date 20.09.2024
Carry trade is a trading strategy that involves borrowing money at a low-interest cost and investing the same in other assets that provide higher returns.
Carry trade is popular among forex trades wherein an investor borrows from a country with low interest rates and a weaker currency, and reinvests the money in another country for higher returns.
The Japanese Yen appreciation against the US dollar, investors will have to rush and unwind their carry trade in order to cut losses. This could be one of the reasons for the fall in the US equity market going ahead.
According to NSDL, Japanese foreign portfolio investors hold equities worth Rs 2.05 trillion. A stronger Yen would prompt some selling by these sets of investors.
USD YEN below 140 is red signal indeed !
Regards,
Ankur
Carry trade is a trading strategy that involves borrowing money at a low-interest cost and investing the same in other assets that provide higher returns.
Carry trade is popular among forex trades wherein an investor borrows from a country with low interest rates and a weaker currency, and reinvests the money in another country for higher returns.
The Japanese Yen appreciation against the US dollar, investors will have to rush and unwind their carry trade in order to cut losses. This could be one of the reasons for the fall in the US equity market going ahead.
According to NSDL, Japanese foreign portfolio investors hold equities worth Rs 2.05 trillion. A stronger Yen would prompt some selling by these sets of investors.
USD YEN below 140 is red signal indeed !
Regards,
Ankur
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