The Japanese yen fell to 157.20 against the US dollar and became a hot topic again in global foreign exchange markets. However, yen weakness, which has historically been associated with risk appetite, may not have the same effect this time. While the possible intervention of the Bank of Japan is discussed, analysts point out that the country’s debt burden and fiscal expansion policies produce mixed signals for risky assets.
The Throne of the New Is Shaking
When the yen weakens, it usually cryptocurrencyThe tendency towards risky assets such as currencies increases because investors switch to high-yield assets such as the dollar with low-interest yen loans. But today the picture is quite different. Although interest rates in Japan are still at 0.5 percent, the country’s public debt has reached 240 percent of GDP. The new Prime Minister’s expansionary fiscal policies, along with the $135 billion incentive package, mean more borrowing.
According to experts, all these developments Japanese government bondsIt pushes up interest rates, which have remained close to zero for many years. Ten-year bond yield reached 1.84 percent, the highest level since 2008. Economists state that Japan will either risk a financial crisis by increasing bond interest rates, or will enter a new spiral of depreciation in the yen by keeping interest rates low. This dilemma weakens the yen’s function as both a carrier currency and a safe haven.
New Safe Haven Becomes Swiss Franc
Eyes on markets as they search for alternatives Swiss francIt was converted to . According to Marc Chandler of Bannockburn Global Forex, the franc’s policy rate is at 0 percent and the 10-year bond yield is 0.09 percent, the lowest rate among developed countries. These features make the franc stand out as the new carry trade currency.
Bitcoin 
$91,789.74 The picture is also changing for investors. While yen movements used to be seen as one of the main indicators to measure risk appetite, analysts now recommend following CHF parities. Because the relatively stable financial structure of the Swiss economy risky assetsIt produces more accurate signals in reading the general orientation of the vehicle.
