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. Economics

    Lessons Learned: Comparing The Japanese ...

  2. Economics

    Tankan Survey Provides Clues To Japanese ...

  3. Insurance

    Understanding Japanese Keiretsu

  4. Personal Finance

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

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center