Reported about 2 months ago
A yen-focused carry trade, which previously caused market turmoil, is regaining traction as hedge funds and other investors return to borrowing yen to invest in higher-yielding assets. Following a drop in the yen's value against the dollar and recent economic data, interest in carry trades has surged, with many traders betting on a further weakening of the currency. The dynamic is influenced by potential actions from the Bank of Japan on interest rates and Federal Reserve policies, making the strategy appealing even amid concerns from past volatility.
Source: YAHOO