Yen Carry-Trade Gauge Rises to 2008 High Amid BOJ Easing
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A gauge of demand for yen carry trades is at its highest since 2008 as Bank of Japan Governor Haruhiko Kuroda keeps borrowing costs near zero while global interest rates climb.
Foreign banks’ lending in Japan to their main offices, an indicator of demand for the yen to fund purchases of higher-yielding assets, climbed for a fourth month in November to 8.3 trillion yen ($79.5 billion), the most since December 2008, the latest BOJ figures show. Yen carry trades delivered 10.4 percent returns against the won in the fourth quarter and more than 6 percent versus 11 other major currencies.