Cross-border flows drive the Yen lower ahead of Lower House Election campaigning: The MUFG Global Markets Podcast

So far in October, the number of daily new COVID-19 infections has declined, and on October 14, Prime Minister Fumio Kishida dissolved the Lower House. Campaigning has begun ahead of the General Election on October 31. Both the ruling and opposition parties promise subsidies and tax cuts. JPY rates are trending upward, and Japanese investors are causing JPY basis to widen. USDJPY has risen, pushed upward primarily by rising oil prices.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses September and October securities investing flows in the wake of the Lower House dissolution and ahead of the general elections. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.

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