Forex
Yen Soars on Carry Trade Unwind as BOJ Officials Pledge Rate Hikes
A rush to unwind yen-funded carry trades has sent the currency to a one-month high against the dollar, driven by hawkish comments from Bank of Japan (BOJ) Governor Kazuo Ueda and board member Hajime Takata.
The BOJ could raise interest rates at three consecutive meetings through December if yen weakness persists, according to Nomura Securities Co.
'We're seeing unwinds of yen-funded carry trades and significant interest to own the yen over other G10 currencies in the medium term,' said Sagar Sambrani, a senior foreign-exchange options trader at Nomura in London.