Currencies
Wider interest rate spreads and greater market volatility are drawing investors away from the underperforming U.S. dollar.
Australia’s recent interest rate hikes and the currency’s volatility against the yen present greater profit opportunities for market participants. © Reuters
MAO KATO, HAYATE KOIKE and MASASHIGE TANIGUCHI
TOKYO — During the month of April, trading volumes for the yen-U.S. dollar pair at major foreign exchange brokerages plunged by nearly 40% year-over-year. This shift reflects a growing trend among retail investors who are pivoting toward more lucrative and dynamic currency pairings, favoring the Australian dollar and the euro when trading against the Japanese yen.