Japanese Yen: Flows and trade leave Japanese Yen exposed – BNY
Geoff Yu at BNY Mellon highlights that foreign investors are accelerating Japanese Government Bond selling while Japanese investors increase purchases of overseas bonds and equities. This flow mix weakens support for the Japanese Yen and points to further depreciation.
BNY Mellon's Geoff Yu notes that rising outflows of Japanese Government Bonds and growing purchases of foreign assets by Japanese investors are weakening the Japanese Yen's value. Despite robust external demand indicated by strong export and trade data, currency strength is not being supported by these economic indicators. The flow mix indicates exposure for the Yen, with foreign investors accelerating bond sales and Japanese investors allocating more funds to overseas bonds and equities. This trend of weakening support for the Yen suggests further depreciation is likely.
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