Japanese investors rethink high-yield currency risks as US rates rise
High-yield currencies, including the Australian dollar and Mexican peso, have fallen against the U.S. dollar in recent weeks. (Source photos by Nikkei)
MASASHIGE TANIGUCHI
October 16, 2026 01:20 JST
TOKYO -- High-yield currencies that have drawn investors now face market headwinds as U.S. long-term yields push above the key threshold of 5%, spurring selling of currencies viewed as riskier such as the Mexican peso, which has fallen 7.2% against the greenback over the past four weeks.