
Japan just hiked rates to the highest level since 1995. The yen is now at its weakest level since 2024. That's not supposed to happen. The reason it is: Japan moved rates to 1% while the US is at 3.75% & may hike further. Speculators are still borrowing cheap yen to buy higher-yielding US assets and one small hike doesn't change that math. Japan spent $73bn trying to stop this last month. It's back at the same levels.
