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Assessing USD/JPY Carry Trade Risks in a Changing 2025 Monetary Landscape - Finnoexpert

Summary by Finnoexpert
The carry trade — borrowing at low Japanese interest rates to invest in higher-yielding assets — has long been a staple strategy for global investors seeking to capitalize on significant interest rate differentials. As of mid-2025, this trade faces mounting challenges amid evolving monetary policy dynamics in the United States and Japan. This article explores the current macroeconomic backdrop, monetary policy shifts, the compression of interest…
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Finnoexpert broke the news in on Monday, July 21, 2025.
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