1
Japan’s central bank is in focus this week as its next interest-rate meeting comes amid new 40-year yen lows against the US dollar.
Key points:Â
- The Japanese yen is approaching new 40-year lows against the US dollar, nearly beating its latest record from last week.
- The Bank of Japan will decide on interest-rate changes on July 31, with rates already at 1%, their highest since September 1995.
- Analysts have been warning that the yen carry trade could unwind again, repeating a major crypto headwind from 2024.
Dollar-yen seeks to reclaim 40-year record
Data from TradingView showed USD/JPY approaching 164 on Tuesday, just a fraction below new 40-year highs seen last week.
USD/JPY 12-month chart. Source: Cointelegraph/TradingView
The yen’s status as a funding currency is making BoJ monetary policy have an outsized influence on global markets. Japan’s currency markets are characterized by minimal capital controls and unmatched liquidity…
