The Zhitong Finance App learned that arbitrage trading around the yen currency exchange rate (that is, the Carry Trade transaction model) seems to be experiencing weakening financing advantages and restructuring of funding sources. The yen's appreciation trajectory is weakening the appeal of yen as an arbitrage financing currency, prompting investors to consider alternatives such as the Swiss franc and the Swedish krona. If this major adjustment is accompanied by shrinking financial market leverage and large-scale sales of high-liquidity risk assets such as stocks and bonds, it may put significant selling pressure on related stocks, bonds, and high-yield currencies. Expectations of the Bank of Japan's interest rate hike are heating up. Coupled with the intervention of the US and Japan in joint purchases of yen, it can be said that the overall exchange rate risk of borrowing low interest costs yen to hold overseas assets has been greatly increased recently.

Zhitongcaijing · 2d ago
The Zhitong Finance App learned that arbitrage trading around the yen currency exchange rate (that is, the Carry Trade transaction model) seems to be experiencing weakening financing advantages and restructuring of funding sources. The yen's appreciation trajectory is weakening the appeal of yen as an arbitrage financing currency, prompting investors to consider alternatives such as the Swiss franc and the Swedish krona. If this major adjustment is accompanied by shrinking financial market leverage and large-scale sales of high-liquidity risk assets such as stocks and bonds, it may put significant selling pressure on related stocks, bonds, and high-yield currencies. Expectations of the Bank of Japan's interest rate hike are heating up. Coupled with the intervention of the US and Japan in joint purchases of yen, it can be said that the overall exchange rate risk of borrowing low interest costs yen to hold overseas assets has been greatly increased recently.