The Japanese yen has surged to about 153 per dollar, a 4% gain from the start of the month and 2% from the start of the year, reviving concerns about a potential carry-trade unwind similar to the market turmoil of summer 2024. Investors who borrowed cheaply in yen to invest in higher-yielding assets may be forced to unwind their positions, potentially impacting global markets. A stronger yen could also squeeze Japanese companies like Toyota and Sony that rely heavily on overseas sales.
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