Shifting Tides: The yen's influence on global markets amidst changing monetary policy

As the Bank of Japan raised interest rates for the first time since 2007 the appeal of borrowing in yen to invest in higher yielding assets diminished, prompting investors to unwind their carry trades. This led to a sharp sell off of global equities and other assets, causing the yen to appreciate and triggering volatility in markets world wide. This shift highlighted Japan’s influence in global financial markets and raised questions about how the Bank of Japan’s monetary policy changes will affect global asset markets and investor sentiment moving forward.

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Sophia SamilskiComment