2024-08-16 22:29:00
Hoy 19:29
Popular operations arbitrage trade The yen, which surged two weeks ago, is back on track.
Japanese currency It has depreciated more than 5% against the U.S. dollar since August 5when an unexpected interest rate hike Japanworries about U.S. earnings and a weak jobs report pushed the yen to a seven-month high.
Fed agrees to cut interest rates again
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Japan’s largest stockbroker Nomura Holdings Inc attracts investors Start borrowing yen again to invest in other high-yielding assets. This shows enterprise customers and hedge fund, hedge fundOperators, which have been keen on arbitrage trades, are returning to these businesses.
Arbitrage trade attracts hedge funds again
Arbitrage operations pick up ‘significantly’ Antony Foster, head of G-10 FX spot trading at Nomura in London, said the U.S. retail sales data exceeded expectations. He said several accounts had sold Japanese yen and bought Australian dollars and British pounds.
U.S. bond yields rose on Thursday after sales data prompted traders to lower expectations for an interest rate cut by the Federal Reserve this year. Higher yields in other parts of the world boost appeal of cheap yen borrowingwhere interest rates are much lower, invest in overseas assets.
Even after the volatility of recent weeks, the return of the carry trade highlights the appeal of the strategy.
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