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Currencies

Mrs. Watanabe had a change of heart in 2022: Bank of Japan report

Yen's big dip pushed individual investors to avoid bucking the trend as usual

Personal forex investors in Japan usually go against the flow, but as they joined the selling of Japan's currency in 2022, they may have amplified the yen's depreciation against the dollar.   © Reuters

TOKYO -- Individual foreign exchange investors in Japan, collectively known as "Mrs. Watanabe" in the FX market, abandoned their usual contrarian trading patterns in 2022, a Bank of Japan report suggested on Friday, apparently driven by the yen's heavy depreciation against the dollar last year.

Mrs. Watanabe is traditionally known for bucking investment trends and hunting for bigger returns from currencies with higher yields.

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