BOJ Rate Hike Fails to Boost Yen Repatriation

The repatriation of Japanese money from abroad to domestic assets has slowed due to uncertainty over the Bank of Japan's (BOJ) interest rate decisions and the peak level of Japanese bond yields.

Despite a recent rate hike by the BOJ, major investors remain hesitant to commit heavily to domestic bonds while yields continue to rise and policymakers provide few clues on future rate increases.

This caution is capping the scope for a sustained yen rally and affecting global markets, with the yen trading near 159 per dollar after giving up most of its sharp gains from early September.