The invasion of Ukraine’s implications for JPY-denominated assets: The MUFG Global Markets Podcast

Ukraine is in chaos following the invasion by Russia. The Nikkei Average has responded by weakening, but USDJPY and JPY rates have not fallen markedly, staying level at around 115 and 0.20% respectively. In contrast JPY basis widened significantly. Expelling Russia from the SWIFT system has increased USD asset funding costs for Japanese investors.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects market uncertainties caused by the Ukraine invasion and discusses JPY cross-asset pricing and JPY cross-asset flow from the January JSDA data. He also shares his views on Dollar/Yen, Yen rates, and Yen basis.

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