Why the Japanese Yen Is So Volatile
There were plenty of reasons for the global market selloff on Aug. 5, including premature worries of a US slowdown and fears of an artificial intelligence bubble. But one of the main culprits was the unwinding of a popular yen-centered carry trade. The trouble began when the yen’s value started rising after the Bank of Japan hiked interest rates for a second time this year. Now, as the dust settles, investors and Japanese business owners alike are questioning the yen’s role in the global economy.
For more Bloomberg reporting on the yen carry trade:
https://www.bloomberg.com/news/articles/2024-08-21/yen-carry-trade-data-suggest-cautious-return-of-retail-investors?utm_medium=social&utm_source=youtube&utm_campaign=originals&utm_content=article
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00:00 Introduction
00:48 Yen and interest rates
02:11 BOJ’s July rate hike
03:10 Carry trade and the ‘Great Unwind’, explained
04:46 Impact on everyday Japanese
07:41 What this means for the yen and global markets
09:15 Uncertainty prevails
#japan
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42 Comments
Tbh, Yen is the bumper for Dollar. 🤭
日本語字幕もあるのか
Remember when everyone was saying Japans currency would collapse because of their massive debt? I remember
The stock markets are as big as a balloon 🎈 the real economies are as big as a pin 📌.
So interest rates have been low in Japan because of a slugging economy, doesn't that admit that the government is in full control of interest rates? Because i don't think the market would keep interest rates low when japans debt to gdp ratio is over 250%
The old man was so impressive!!
the most interesting facts is that the Japanese trader started trade at age 66, you are never too old to start trade.
But, due to unruliness or poor behavior there has been, as of late, major pushback against tourism here in Japan. It's a move that simply can't be made while major fumbles like this are occuring.
Yen 💴 is a Global Currency.
all issues come from the way the us exports inflation.
"The Great Unwind", as we call it today…lady, this just happened. 😛
Thank you for your work
The response is poor leadership.
ぴーちゃんのおじいさんや
Joke or what? It's more stable then the USD.
The Land Of The Samurai
And also The Land Of Mrs Watanabes😂
I liked the acumen of the old man. Japan is just an amazing country.
BECAUSE THE CIA WANTS IT TO BE
そうっすね😢円安は嫌🤬
Best of luck Mrs Watanabe!
2:47 …when you're done doing your taxes, and you find out you owe a lot this year lol smfh. 🤣 "…it's not fun…it's the worst part of the game!"
Unique to Japan how its government has been able to rely almost exclusively on debt for 25 years with little or no reaction (or even awareness) from the general population, when if, say, the German government tried it, there'd be protests and uproar. Cue the kneejerk reaction "Oh it's ok, because it's domestic debt" – point is, that's not the whole point.
That 88yr old man either likes trading as a hobby S well or maybe he thinks he'll live to 150yrs d
"I don't trust people but animals are honest"
Words to live by sir!
It feels like like the Dotcom Bubble
so can Japan just never increase rates again?
Please read about unit 731. 😮😮😮
You are kidding, the yen maybe cheap but the prices of food and goods are very expensive, so the cheap yen is not a blessing to the tourists.
💄Mrs. Wantanabe🥰
Totally fake news, dunt y'all know jpn's GNP has been much much bigger than its GDP for decades? lol sluggish jpn economy? Boooooooo!
Totally fake news, dunt y'all know jpn's GNP has been much much bigger than its GDP for decades? lol sluggish jpn economy? Boooooooo!
Old man with a parrot 🦜 was cool asf
Why is it volatile? Insider trading by the LDP. Its the talk even among the Japanese.
❤❤❤❤❤❤❤
Carry traders in Iceland lost everything in 2008 crash. They borrowed from Japan and invested in ICeland. and then Iceland crashed famously and these investors lost everything………… moral of the story. This investement is far from safe.
We need a documentary on Shigeru Fujimoto😂😂
This article or video just a propaganda by US or Western world to manipulate Japanese Economy.. Similar to PLAZA accord..So, I hope Japanese people are smart enough this time
2024 is the new 1929. SELL YOUR STOCKS, all of them.
Wont somebody think of the poor investors?
Love the video
Yen is a scam
it ain't even getting started yet….