iFlow Carry Shows Signs of Revival with G10 Inflows and EM FX Selling

According to FX Street, Geoff Yu from BNY reports that the iFlow Carry metric is beginning to mirror the upswing seen in 2023. Neutral positioning in carry currencies, including those funded by the dollar, is creating opportunities for exposures to rebuild.

Broad inflows have been observed in G10 FX markets, while emerging market currencies have experienced selling pressure. The most notable EM FX declines were led by the Hungarian forint (HUF), South African rand (ZAR), and South Korean won (KRW), FX Street reported.

This trend is significant for Japanese investors, as shifts in carry currencies and FX flows can influence global risk appetite and impact Japan’s export-driven equity markets.