Bearish
NZD/JPY declines to 89.50 amid yen carry trade unwind ahead of BoJ rate hike.
Over the past 24 hours, NZD/JPY has fallen to 89.50, its lowest level since February. This decline is primarily due to the unwinding of yen carry trades as investors anticipate the Bank of Japan's (BoJ) upcoming interest rate hike. The BoJ is expected to raise its policy rate to 1.25% on Friday, the highest since 1993, which has strengthened the yen and pressured the New Zealand dollar.
Key points
- Yen carry trade unwind drags NZD/JPY lower ahead of BoJ rate hike.
- Speculative positioning shifts from net short to net long in yen contracts.
- BoJ expected to raise policy rate to 1.25% on Friday, highest since 1993.
Sources
AI-generated from public news sources. Not financial advice.
