Key facts
- Foreign-currency deposits in Japan increased by a record 3.98 trillion yen year-on-year in the April-June quarter.
- Both retail and corporate investors contributed to this growth.
- The diversification is driven by concerns over the yen's persistent depreciation.
Foreign-currency deposits in Japan experienced a record increase of 3.98 trillion yen ($25.1 billion) on the year during the April-June quarter. This surge is attributed to both retail and corporate investors diversifying their assets in anticipation of the yen's continued depreciation. Investors are increasingly moving funds into non-yen denominated assets, with a particular focus on the U.S. dollar, as they seek to mitigate risks associated with the yen's persistent weakness.