BoJ Rate Hike to 1.25 Percent Fails to Trigger Yen Carry Unwind
Bitcoin surged to nearly $81,000 after the Bank of Japan raised rates, as the yen weakened instead of strengthening due to concurrent Fed hikes maintaining a profitable rate gap. This dynamic has delayed the expected unwind of carry trades, leaving the BOJ with the difficult option of direct market intervention if the currency does not respond to further monetary tightening.
GN auto markets/forex: yen carry trade notes that the yen's weakness persists because the Federal Reserve is also raising rates, which keeps the US-Japan interest differential wide enough to sustain borrowing costs. The desk highlights that if further BOJ hikes fail to firm the currency, authorities may resort to selling US Treasuries as an intervention tool.
Source: coinpedia.orgBitcoin rose 5.8 percent to $80,978 after the Bank of Japan raised rates by 25 basis points. The yen weakened rather than strengthened, preventing the forced liquidation of leveraged crypto positions.
Source: cryptoticker.io
