Traders unmoved by BoJ interest rate rise
NEWS
Higher interest rates in Japan could affect the yen's role as a funding currency in the carry trade. The low-yielding currency has been heavily used by traders to fund positions in high-yielding currencies.
Gavin Wells, head of spot trading at Citigroup in London, said the move was good for hedge funds, real-money managers, banks and speculators. "Normally, when a bank raises interest rates, the currency strengthens. This time, the yen weakened but it was expected by the market, which is good."
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