Yen Nears 40-Year Low: Why BOJ's Rate Hike to 1% and Record Intervention Fail to Stem the Slide

The Japanese yen is approaching its lowest level since 1986, despite the BOJ raising its policy rate to 1% and joining with the Ministry of Finance to deploy a record ¥11.7 trillion in intervention. The core reasons include a widening US-Japan interest rate differential, crowded carry trades, and high public debt constraining further hikes, highlighting a loss of monetary policy autonomy to the Fed's rate cycle.