Name: Yen strength won’t unravel the carry trade: JPMorgan
Uploaded: 2026-09-07T10:13:30Z
Duration: 2 min 48 s
Description: JPMorgan’s Arindam Sandilya says yen strength alone is unlikely to trigger an unwind of global carry trades as investors have diversified funding into other low-yielding currencies. He argues a deflationary shock, potentially from a premature end to the AI cycle, poses a greater threat.

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JPMorgan: Yen strength unlikely to unwind carry trades

Bullish Gator

Sep. 7, 2026

JPMorgan’s Arindam Sandilya says yen appreciation alone won’t force carry-trade unwinds; diversified funding and risk of a deflationary shock—possibly from a premature end to the AI cycle—pose bigger threats.

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What stands out

CNBC International Live ran a short, sharp reminder: yen moves alone are no longer the automatic market detonator they once were. JPMorgan’s Arindam Sandilya points out that carry-trade funding has migrated away from a single currency into a basket of low-yielders, so a stronger yen is less likely to force a mass unwind. He also flipped the script, saying the bigger threat is a deflationary shock if the artificial intelligence (AI) investment cycle cools prematurely, which reframes where macro risk really sits right now.