Yen Carry Traders See Opportunity in Ishiba’s Election Setback

Japan’s recent election shock—where ruling party heavyweight Shigeru Ishiba suffered a surprising defeat—has currency traders buzzing. The yen carry trade, a risky strategy where investors borrow cheap yen to invest in higher-yielding assets abroad, might get a second wind. Last year’s brutal losses scared many off, but political uncertainty could weaken the yen further, making this gamble attractive again.