Japanese Housewives

AAA

DEFINITION of 'Japanese Housewives'

In the foreign exchange world, a collective term for the legions of Japanese housewives who resorted to currency trading in the first decade of the new millennium. With Japanese interest rates near zero percent for most of the decade, their motivation for currency trading was to increase the low returns on their portfolios.
These homemaker-traders are also called "Mrs. Watanabes."



INVESTOPEDIA EXPLAINS 'Japanese Housewives'

Japanese housewives have had a discernible impact on currency markets. Bank of Japan officials said in 2007 that the housewives' trading activity helped to stabilize currency markets because of their tendency to buy on dips and sell into rallies.
A significant amount of this trading was carried out through online margin accounts, which offered leverage of 20 to 100 times. Carry trades, which involve borrowing in low-interest rate currencies and investing in higher yield assets, were also a favored strategy for many of the Japanese housewives.

RELATED TERMS
  1. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  2. Currency Carry Trade

    A strategy in which an investor sells a certain currency with ...
  3. Japan Inc.

    A nickname for the corporate world of Japan that came about during ...
  4. Bank Of Japan - BoJ

    Headquartered in the business district of Nihonbashi in Tokyo, ...
  5. Currency Trading Platform

    A type of trading software used to help currency traders with ...
  6. ICE LIBOR

    See LIBOR
Related Articles
  1. The Credit Crisis And The Carry Trade
    Forex Education

    The Credit Crisis And The Carry Trade

  2. Currency Carry Trades 101
    Forex Education

    Currency Carry Trades 101

  3. The U.S. Dollar And The Yen: An Interesting ...
    Forex Education

    The U.S. Dollar And The Yen: An Interesting ...

  4. Forex Exotic Currency Trading: Risks ...
    Fundamental Analysis

    Forex Exotic Currency Trading: Risks ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center