Investors' long-running yen carry trades—borrowing cheap yen to fund
higher-yield assets—have funneled Asia-origin flows into global risk assets,
including US stocks and commodities. The recent yen decline is market-relevant
as markets approach the two-year anniversary in August of Japan's large August
2024 yen intervention, which triggered Japan's biggest one-day equity drop since
1987, amplified US volatility and saw the S&P 500 fall 6.1% over three days. ING
global markets head Chris Turner says, given thin trading ahead of the July 4
holiday, Japan could buy yen as soon as Friday or wait until the July 20 Marine
Day holiday to act.