Macro & Policy/Currency & Rates
Why the Yen Keeps Falling Even as the Bank of Japan Turns Hawkish
The Yen recently touched its weakest level against the Dollar in roughly 40 years, even as the Bank of Japan holds its policy rate at 1.00% and signals more hikes are coming. That combination — a central bank tightening while its currency keeps sliding — is the story of a fiscal and monetary policy tug-of-war playing out in Tokyo right now, one directly connected to the joint US-Japan interventi..