Express
Bank of Japan may raise interest rates to 0.75%, increasing risk of unwinding yen carry trades
Summary: According to reports, the Bank of Japan may raise interest rates by 25 basis points to 0.75% at its meeting on December 19, the highest level since 1995; following the news, the yen strengthened from around 155 to approximately 154.56. A stronger yen typically accompanies macro portfolio deleveraging, potentially triggering unwinding of yen-funded carry trades ...
According to reports, the Bank of Japan may raise interest rates by 25 basis points to 0.75% at its meeting on December 19, the highest level since 1995; following the news, the yen strengthened from around 155 to approximately 154.56. A stronger yen typically accompanies macro portfolio deleveraging, potentially triggering unwinding of yen-funded carry trades and tightening liquidity that supported Bitcoin's rebound from November lows. If funding costs continue to rise, leveraged funds may reduce exposure to high volatility assets like BTC. (CoinDesk)
Tags:
Link: Bank of Japan may raise interest rates to 0.75%, increasing risk of unwinding yen carry trades [Copy]
