Carry Traders Shift Funding to Swiss Franc Amid Yen Volatility
· Business · Bloomberg, Reuters
Carry traders are moving their near‑term borrowing from the Japanese yen to the Swiss franc. The shift follows a spike in yen market volatility and the threat of Japanese intervention. Higher interest rates in Japan also reduce the yen’s appeal as a funding currency. Demand for the Swiss franc is expected to rise as it becomes the preferred currency for carry‑trade financing. The change may widen the yen–franc spread and alter risk–return profiles for global investors.
Why it matters
The move signals a shift in global carry‑trade funding that could increase demand for the Swiss franc and heighten yen volatility, affecting investment returns for traders who use these currencies.
Read the original report — Bloomberg
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.