The Yen Carry Trade Is Quietly Rebuilding

Episode 50 of Currency Conversations with Fexingo. Lucas and Luna examine the yen carry trade, which has quietly returned after the Bank of Japan's rate hike in 2025 failed to sustain yen strength. The yen is back at 160 per dollar, and investors are borrowing cheap yen again to buy higher-yielding emerging market bonds. Lucas explains how the trade works, why it's risky in a world of volatile energy prices and ECB rate hikes, and what a sudden unwind could mean for currencies like the Brazilian real and Mexican peso. Luna brings data on how EM ETFs like EWZ have rallied 4.2% in a week, partly fueled by yen-funded flows. They also discuss whether this time is different, or if the carry trade always ends the same way. Tied to current economic indicators: yen at 160.3, dollar index at 120.1, and markets pricing in Fed rate cuts by year-end. #YenCarryTrade #CurrencyMarkets #Forex #BankOfJapan #EmergingMarkets #CarryTrade #JapaneseYen #ECB #FedRateCuts #EnergyPrices #BrazilianReal #MexicanPeso #EWZ #FX #GlobalMacro #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo