# Japan's yen back in favour as a funding currency, but with more risks

> The yen is regaining its status as the most popular funding currency for carry trades, as the Bank of Japan signals it will keep yields low while the Fed and European central banks turn hawkish. A special BOJ bond-buying operation reinforced that stance this week. Analysts warn the yen could revert to a safe haven if Ukraine tensions rise or a hawkish Fed triggers a selloff.

- Date: 2022-02-16 · published 2022-02-16T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/42933-japan-s-yen-back-in-favour-as-a-funding-currency-but-with-more-risks
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A weaker yen raises the cost of imported feed ingredients and freight priced in dollars for Japanese buyers. Shifts in the yen-dollar rate can change the landed cost of US feed grains and meal.

## Sources

- nippon.com: https://www.nippon.com/en/news/reu20220215KBN2KK0U5/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.