Japan: Largest inflow since mid-December – Danske Bank
|Portfolio flows out Japan have been an important driver behind JPY weakness in the recent year, and today’s flow data from the Ministry of Finance in Japan show that Japanese investors were net sellers of foreign bonds in the week ending 9 February and all in all, a net inflow into Japan of 630.2bn was recorded last week – the largest inflow since mid-December, explains Senior Analyst, Piet P.H. Christiansen at Danske Bank.
Key Quotes
“USD/JPY broke below 106 this morning, and we think a continued reversal of portfolio back into Japan (driven by higher interest rate volatility in the US and Europe) in combination with fiscal year-end in Japan and stretched short JPY positioning is likely to weigh further on USD/JPY in coming months.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.