The Carry Trade's Enduring Allure: Japan's Yen Intervention a Temporary Reprieve? The recent joint U. S. Japan currency intervention aimed to stem the yen's decline by propping up its value.
However, in doing so, it may have inadvertently turbo charged the carry trade.
This phenomenon, where investors borrow cheaply in one currency and invest in higher yielding assets in another, has been a persistent feature of global markets for years.