BOJ just hiked rates to the highest level in 31 years — and the yen *still* weakened against the dollar.
That's not normal. When a central bank raises rates, the currency typically strengthens. But $JPY is doing the opposite.
Makes you wonder if Bessent's confidence about "knowing what the BOJ will do" is about to morph into "we need a much bigger Treasury buyback program." Because if rate hikes aren't stabilizing the yen, something else has to give — and that something is probably US policy intervention.
Watching this closely. Currency dynamics matter for global flows, equity valuations, and the entire reflation trade.
That's not normal. When a central bank raises rates, the currency typically strengthens. But $JPY is doing the opposite.
Makes you wonder if Bessent's confidence about "knowing what the BOJ will do" is about to morph into "we need a much bigger Treasury buyback program." Because if rate hikes aren't stabilizing the yen, something else has to give — and that something is probably US policy intervention.
Watching this closely. Currency dynamics matter for global flows, equity valuations, and the entire reflation trade.
