Geoff Yu at BNY Mellon highlights that foreign investors are accelerating Japanese Government Bond selling while Japanese investors increase purchases of overseas bonds and equities. This flow mix weakens support for the Japanese Yen and points to further depreciation. Strong export and trade data underscore robust external demand but do not offset currency vulnerability.
Portfolio shifts pressure Japanese Yen
“Japan’s portfolio flow showed foreign investors accelerated JGB selling last week, with net outflows of ¥1.25tn, cutting YTD foreign net purchases to ¥4.99tn, the lowest cumulative level since early February.”
“Despite the sharp rise in…
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