Yen Extends Advance as Global Carry Trade Unwind Ramps Up

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Yen Extends Advance as Global Carry Trade Unwind Ramps Up
Bloomberg BusinessweekToshimitsu MotegiJapan
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(Bloomberg) -- The yen rallied through key levels against the greenback on Wednesday, leading an unwind in global carry trades that pushed down currencies...

-- The yen rallied through key levels against the greenback on Wednesday, leading an unwind in global carry trades that pushed down currencies ranging from the Mexican peso to the Australian and New Zealand dollars.Dollar-yen fell below its 100-day moving average for the first time since mid-March, and also broke the psychological threshold of 155, with technical indicators suggesting the momentum can continue. The Aussie, kiwi and peso all slid 1% against the yen.

“The comments by LDP’s Kono and Motegi add to sense of caution over a possible BOJ rate hike,” said Keiichi Iguchi, a senior strategist at Resona Holdings Inc. in Tokyo. Together with suspected yen interventions earlier this month, “a BOJ rate hike could mark the end of the yen weakness.” While only about 30% of Bank of Japan watchers expect that the central bank will hike rates on July 31, more than 90% see the risk of such a move, according to a Bloomberg survey.Under President Milei, the worst economic crisis in decades puts Argentine ingenuity to the test

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