Mrs. Watanabe

AAA

DEFINITION of 'Mrs. Watanabe'

The archetypical Japanese housewife, who seeks the best use of her family’s savings. Though historically risk-averse, Mrs. Watanabe became a surprisingly big player in currency trading during the past decade in order to combat low interest rates in Japan. See also “Japanese Housewives.” 

INVESTOPEDIA EXPLAINS 'Mrs. Watanabe'

While the name “Mrs. Watanabe” connotes a family matriarch, the term more broadly connotes any Japanese retail investor. Culturally, smaller Japanese investors have sought safe investment options. However, perpetually low interest rates since the 1990s led many to become active in the so-called “carry trade.”

The carry trade is a form of speculation in which investors borrow a low-cost currency like the yen and buy high-growth currency, netting a profit. In recent years, for example, Japanese housewives began accumulating Australian dollar deposits, which yielded a significantly higher rate than they could get at home. 

RELATED TERMS
  1. Japan Credit Rating Agency - JCR

    One of the key credit rating agencies in Japan. JCR provides ...
  2. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  3. Japanese Government Bond - JGB

    A bond issued by the government of Japan. The government pays ...
  4. Japan Association Of Securities ...

    An electronic security exchange based in Tokyo, Japan. Originally ...
  5. Japan ETFs

    A type of exchange-traded fund that invests the majority of its ...
  6. USD/JPY (U.S. Dollar/Japanese Yen) ...

    The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) ...
Related Articles
  1. Lessons Learned: Comparing The Japanese ...
    Economics

    Lessons Learned: Comparing The Japanese ...

  2. Tankan Survey Provides Clues To Japanese ...
    Economics

    Tankan Survey Provides Clues To Japanese ...

  3. Understanding Japanese Keiretsu
    Insurance

    Understanding Japanese Keiretsu

  4. The Lost Decade: Lessons From Japan's ...
    Personal Finance

    The Lost Decade: Lessons From Japan's ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center