USDJPY has been on a downward trend of late. Not only has USD been weakening, but there is also the seasonal factor of Japanese companies repatriating overseas profits. The lower bound for USDJPY was firm until Japan's long holiday weekend, likely supported by JPY selling from Japanese investors as overseas investing is deeply entrenched. All that said, the COVID-19 pandemic may already be upending traditional Japanese corporate FDI and investor behavior.
In this episode, Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses Japanese FDI flow and profitability as well as implications for JPY basis. He also tells listeners what to watch for and updates his view on the Yen, JPY rates, and JPY cross-currency basis.
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