Japanese Housewives

A A A

DEFINITION

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 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 yen (JPY), ...
  2. Currency Carry Trade

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

    A nickname for the corporate world of Japan that came about during the 1980s ...
  4. Bank Of Japan - BoJ

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

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

    See LIBOR
  7. WM/Reuters Benchmark Rates

    Spot and forward foreign exchange rates that are used as standard rates for ...
  8. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position in a security or ...
  9. Carry Trade

    A trading strategy that involves borrowing at a low interest rate and investing ...
  10. Exchange Rate

    The price of a nation’s currency in terms of another currency. An exchange rate ...
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. Is the Iraqi Dinar Investment a Wise ...
    Forex Fundamentals

    Is the Iraqi Dinar Investment a Wise ...

  5. Seven Emerging Currencies Challenging ...
    Forex Fundamentals

    Seven Emerging Currencies Challenging ...

  6. Covered Interest Arbitrage
    Forex Strategies

    Covered Interest Arbitrage

  7. Cycles And Presidential Cycles: Is There ...
    Economics

    Cycles And Presidential Cycles: Is There ...

  8. For Individual Investors, These May ...
    Active Trading Fundamentals

    For Individual Investors, These May ...

  9. The Insiders Who Fix Rates for Gold, ...
    Investing Basics

    The Insiders Who Fix Rates for Gold, ...

  10. How The Forex
    Forex News

    How The Forex "Fix" May Be Rigged

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center