Forex
Joint Yen Intervention Sparks Uncertainty Over Carry Trades
The US and Japan have intervened in currency markets for the first time since 1998 to support the yen, which had weakened to a 40-year low against the dollar.
The coordinated intervention saw the Japanese Finance Minister confirm that the two countries would work together again if needed to stabilize the currency.
The move has traders watching whether it will lead to another unwind of carry trades, where investors borrow cheaply in Japan to buy higher-yielding currencies and assets overseas.