The stronger the yen, the more panic in the US stock market?

Wallstreetcn
2026.01.24 00:59
portai
I'm PortAI, I can summarize articles.

Overnight, the Japanese yen surged significantly, suspected to be due to a joint intervention in the foreign exchange market by the US and Japan. Statistics from Société Générale show that since the summer 2024 stock market sell-off (closure of yen carry trades)…… there has been a peculiar relationship between the performance of the yen and the volatility of US short-term stocks: the stronger the yen (red line), the higher the volatility of US stocks (gray line)

Overnight, the Japanese yen surged significantly, suspected to be due to a joint intervention by the US and Japan in the foreign exchange market.

Statistics from Societe Generale show:

Since the summer 2024 stock market sell-off (closure of yen carry trades) ... there has been a peculiar relationship between the performance of the yen and the volatility of US short-term stocks: the stronger the yen (red line), the higher the volatility of US stocks (gray line).

Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.