Japan’s yen has climbed to a seven-month high, prompting investors to reassess the future of the yen carry trade, a strategy that has played a significant role in global financial markets for years.
The trade is coming under pressure as expectations build that the Bank of Japan could accelerate interest-rate hikes, potentially as soon as its policy meeting next week. Reuters reported that the combination of a stronger yen and expectations of tighter monetary policy is raising questions over whether the long-running strategy is approaching a turning point.
