Yen sinks after BoJ raises rates to highest level since 1995
Hawkish comments by BoJ governor fail to arrest renewed slide in currency after borrowing costs lifted to 1.25%
Source: Financial Times
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DW NOTE
The BOJ raised rates 15 basis points to 1.25% — the highest nominal level in three decades — and the yen fell anyway. Markets are pricing the gap between Japanese rates and a Fed that just hiked to 3.75% with inflation still running at 3.4%. A 250-basis-point differential doesn't close with speeches; it closes with capital flows, and those flows are moving the other direction.