RBC: Japanese limits on margin trading will weigh on Aussie/yen cross in August
The introduction of leverage caps on foreign exchange margin trading in Japan in the coming month is likely to place pressure on the Australian dollar/yen cross rate, according to research by the Royal Bank of Canada (RBC).
The Australian dollar has rallied during the past 10 days, rising 8.5% against the yen from its July 6 low. However, this trend could reverse as new Japanese Financial Services Agency (FSA) rules on leverage limits affecting Japanese retail investors become effective next
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