Mrs. Watanabe

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.” 

BREAKING DOWN '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. Japanese Housewives

    In the foreign exchange world, a collective term for the legions ...
  2. Funding Currency

    The currency being exchanged in a currency carry trade. A funding ...
  3. Currency Carry Trade

    A strategy in which an investor sells a certain currency with ...
  4. USD/JPY (U.S. Dollar/Japanese Yen) ...

    The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) ...
  5. Currency History

    The historical values of a base currency in relation to the values ...
  6. Historical Currency Exchange Rates

    A collection of historical exchange rates that are used to provide ...
Related Articles
  1. Trading

    Who are Japanese Housewives?

    The term “Japanese housewives” refers to the thousands of Japanese women who traded in the currency markets in the first decade of the new millennium.
  2. Markets

    Japan's Heavy Exposure to Rising Rates

    While Japan has seen falling interest rates for over two decades, quantitative easing could mean this is about change. Just how exposed is the country?
  3. Markets

    Japan's Case Study: Diminished Effects on QE

    Examine more than 25 years of Japanese expansionary policy, both fiscal and monetary, to see why quantitative easing hasn't worked as expected.
  4. ETFs & Mutual Funds

    Why Investors are Bailing on Japanese Stocks

    Foreign investors have pulled out of Japanese equities to the tune of $46 billion so far this year.
  5. Markets

    Why Money Flow From Japan Matters to the U.S. Equity Market

    Discover why Japanese savers and investors may have a lot to say about the future of the U.S. equity market, and why the trade deficit is responsible.
  6. ETFs & Mutual Funds

    The Case for Investing in Japan

    Learn why despite Japanese equities’ recent volatility, Japan remains one of the most compelling stock markets globally.
  7. Trading

    Understanding Currency Carry Trade

    In a currency carry trade, an investor sells a currency with a low interest rate and then uses the funds to buy a different currency that’s yielding a higher interest rate.
  8. ETFs & Mutual Funds

    The Top 3 ETFs to Track the TOPIX for 2016 (JPXN, EWJ)

    FInd the best ETFs that investors can use to obtain exposure to Japanese equities by tracking one of the major Japanese equity market indexes in 2016.
  9. Markets

    Yen: The Safest Play Amid Brexit and Fed Rate Volatility (JPY)

    Why the Japanese yen has emerged as the safest haven for currency traders in the current economic situation.
  10. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
RELATED FAQS
  1. How often do exchange rates fluctuate?

    Exchange rates float freely against one another, which means they are in constant fluctuation. Currency valuations are determined ... Read Answer >>
  2. Mrs Jaxsonheim is considered one of StrateShooter National Bank's best and most ...

    The correct answer is c. Under the Uniform Securities Act, it is not considered ethical to lend cash or securities to a customer. ... Read Answer >>
  3. What are the most common market indicators to follow the Japanese stock market and ...

    Learn the most common market and economic indicators used by market analysts to follow the Japanese stock market and Japanese ... Read Answer >>
  4. Can I trade a currency when its main market is closed?

    In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, ... Read Answer >>
  5. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  6. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center