TIL: Yen Carries (or Carried) Trade

Carry trades are where a investor borrows in a low-yielding currency such as the yen and invests the proceeds in a high-yielding one

Please note that Carry Trade is a noun, and you should not use it like a verb like I do in the title in formal settings. :)

Yen and CNY/CNH are rising against dollar and the US equity market is plummeting. So Japan finally decided to raise rates, further dragging down the already vulnerable bearish market.

The brilliant Japanese housewives! I did something similar because Chinese banks don't pay interests at all, the rate is at ~.0001%, the Shanghai Composite is always ripping off retail traders, while the US has kept rates between 5.25% to 5.5% for more than a year now.

Yen carried trade, but it is no longer.

See Also

• Large Gap Down
• https://www.marketwatch.com/story/your-stocks-now-trade-at-the-mercy-of-the-japanese-yen-be5852f9