Japanese yen surges as investors unwind carry trades
The Japanese yen has rallied sharply against major currencies as traders aggressively unwind carry trade positions. Anticipation of a rate hike by the Bank of Japan has pushed borrowing costs higher and sparked widespread market caution.
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Japan's yen surged nearly 5% in September against popular carry trade funding currencies, triggering a rapid unwinding of cross-border leverage. The rally comes ahead of an expected interest rate hike by the Bank of Japan.
