Dollar strength revives risk of yen carry trade blowup

MacroDigital Finance
โดย MarketWatch·Read original
Summary · why it matters

The U.S. dollar's recent climb is quietly rebuilding the risk of another Japanese yen carry trade blowup. The yen slipped to a new 40-year low of 162.38 against the dollar on Wednesday, widening the rate gap and making the carry trade more attractive. Analysts warn that a sudden yen strengthening, possibly triggered by Japanese intervention during the U.S. Fourth of July holiday, could force rapid unwinding of positions and spark a wave of selling in U.S. stocks. However, some see the fallout as potentially more contained than the 2024 shock, citing lighter positioning, more regular Bank of Japan intervention, and narrowing interest-rate differentials. Still, strategists caution that the probability of a painful unwind remains higher than usual, even as U.S. stocks have rallied strongly this year.

Impact on stocks 1

Information Technology▲ · 1 stocks
© 2026 MarketDXNews