Mitsubishi UFJ Financial Group (MUFG) indicated that sustained strength in the Japanese yen could trigger a "disruptive" unwinding of carry trades, similar to the market turbulence experienced in the summer of 2024. "This dynamic would threaten high-beta carry currencies that have performed well recently," analysts Lee Hardman and Abdul-Ahad Lockhart wrote in a report. They added that the Australian dollar and emerging market currencies are particularly vulnerable to a rapid unwinding, and stock markets would also face risks.