Forex
BOJ Rate Hike Sparks Yen Sell-Off Amid Persistent Carry Trade
The Bank of Japan (BOJ) raised its policy interest rate to 1.25% on September 18, 2026, marking a 31-year high following a 7-2 board vote.
Despite the rate hike, the Japanese Yen depreciated rapidly against the US Dollar, pushing the USD/JPY exchange rate toward the 156.00-158.00 zone.
The BOJ's cautious guidance prevented a sudden unwinding of the Yen carry trade, sustaining global macro liquidity that supports high-risk assets, including cryptocurrencies.