⚡ TRY/JPY Volume Jumps 235% on Click 365, but Dollar-Yen Still Rules by Value

Turkish lira versus yen trading surged on Tokyo Financial Exchange’s Click 365 platform in August, with contract volume jumping 235 percent year-on-year to 666,619 contracts. TRY/JPY held the top spot by contract count for the fifth straight month, ahead of emerging market pairs including Mexican peso, South African rand and Hungarian forint, all of which outranked euro and pound. However, contract count tells only part of the story. Dollar-yen remains the undisputed value leader with August trading worth 601.5 billion yen compared to just 22.1 billion yen for TRY/JPY, due to differing contract specifications and currency valuations. The sustained interest in high-yielding emerging market currencies against yen points to ongoing carry trade appetite, capitalizing on massive rate differentials like Turkey’s 37 percent repo rate versus Japan’s roughly 1 percent overnight rate. Total platform FX volume reached 1.737 million contracts in August, up 46 percent annually despite falling 34 percent from July’s peak.

FXnCO Insight

Retail carry trade demand for high-yielding EM currencies against yen remains robust despite monthly volatility, though dollar-yen dominates actual monetary exposure.

Source: Finance Magnates