How the Yen Carry Trade Lost Its Edge

Lucas and Luna unpack the quiet death of the yen carry trade in 2026. For decades, traders borrowed cheaply in Japan to chase yield abroad. But with the Bank of Japan finally raising rates and the yen at 159 per dollar, the old math no longer works. They walk through the numbers: the cost of hedging is up, implied volatility has spiked, and the trade that once returned 4 to 5 percent annually is now barely break-even. They also look at who is getting squeezed — retail traders in Tokyo, emerging-market funds that used yen financing, and even some regional banks in Asia. This episode ties together the yen's recent moves, the BOJ's policy shift, and what it means for global capital flows. #YenCarryTrade #BankOfJapan #CurrencyMarkets #CarryTradeUnwind #JapanEconomy #USDJPY #EmergingMarkets #CapitalFlows #HedgeFunds #RetailTraders #InterestRates #FXHedging #GlobalMacro #Business #FexingoBusiness #BusinessPodcast #InternationalBusiness #CrossBorderInvesting Keep every episode free: buymeacoffee.com/fexingo