USD/JPY nearly hit 158 even after the Bank of Japan raised rates by 25 basis points and hinted at further hikes ahead. Normally, a BOJ rate hike strengthens the yen, but this time the Fed also hiked rates, with another increase expected this month, keeping the US-Japan rate gap from narrowing and leaving yen borrowing still profitable. That leaves the BOJ in a difficult spot. If rate hikes alone can’t strengthen the yen, intervention becomes the remaining option, likely through selling US Treasuries.

Was this writing helpful?

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.