Yen Carry Trade Cracks as USD/JPY Slips Below 150, Forcing $1.2T Global Deleveraging

2026-11-06, FP360 — The Japanese yen surged to 149.80 per dollar, up 2.8% this week, as the Bank of Japan signaled a December rate hike, triggering the sharpest unwind of yen-funded carry trades since August 2024. Global equities fell 1.5% as hedge funds scrambled to cover yen shorts, draining liquidity from risk assets.

The Signal: Risk-off deleveraging is accelerating; favor quality and hedges as carry unwind pressures equities.

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Originally published on FINPULSE 360