What’s inside?

Synopsis/Summary

What is the Yen Carry Trade?
Borrow Yen at low interest rates.
Convert to USD (or other high-yield currencies).
Invest in high-return assets (stocks, bonds, real estate).
Profit from the difference between yields and low borrowing costs.
Why is it in focus now?
Japan hiked interest rates (from ~0.0% to 0.25%).
Yen appreciated from 160 to 142 vs USD (~12% rise).
This hurts returns for carry trade investors.
Profitability of this trade depends on a weak Yen—now under threat.
Global & India Impact:
Caused volatility in global markets.
Not a fundamental threat to India, but may present buying opportunities if volatility continues.