Yen Sinks to 162 per Dollar as BOJ Caution Fuels Carry Trades
Updated
Updated · Nikkei Asia · Jul 3
Yen Sinks to 162 per Dollar as BOJ Caution Fuels Carry Trades
3 articles · Updated · Nikkei Asia · Jul 3
Summary
Japan’s yen has slid to a multi-decade low against the dollar, failing to rebound despite recent rate hikes and government currency intervention.
Expectations that the Bank of Japan will tighten only cautiously have kept pressure on the currency, while carry trades and corporate hedging have deepened selling.
Intervention has offered only brief respite, underscoring how structural forces are overwhelming official efforts to slow the decline.
The move leaves the yen still failing to behave as a traditional haven even amid broader market stress tied to inflation fears and the Iran war.
As war drives global inflation, why are investors ignoring traditional risks to chase AI stocks?
With gold, yen, and Treasurys all failing, is the era of the traditional safe haven officially over?
Could the AI rally boosting markets become the very cause of the next systemic financial collapse?
When Safe Havens Fail: The 2026 Collapse of Treasuries, Yen, and Gold in a World of Crisis
Overview
In 2026, traditional safe-haven assets like U.S. Treasuries, the Japanese yen, and gold all broke down at the same time, failing to protect investors during a period of global instability and geopolitical risks such as the war in Iran. This rare event challenged long-standing investment strategies and signaled a new era of uncertainty in global finance. Persistent inflation and fewer expected interest rate cuts weakened the appeal of U.S. Treasuries, while similar pressures and policy uncertainties affected the yen and gold. As a result, investors are rethinking how to manage risk in an unpredictable world.