Amundi Sees Further Yen Gains as Carry-Trade Era Winds Down

The yen has scope to extend its advance as carry trades using the Japanese currency continue to wind down, according to Amundi SA’s chief strategist.

Bank of Japan’s July rate hike, and the shift in monetary policy it heralded, mark a “game changer” for the currency, said Monica Defend, head of Amundi Investment Institute. “We think the fair value on the yen was and is 140.” The currency was at 142.09 versus the dollar as of 4:22 p.m. in London.