MarketPR
USD/JPY briefly touched 151.90, revisiting the exact level that forced Japan's Ministry of Finance to deploy a record ¥9.1 trillion ($60 billion) in yen-support operations during September and October 2022 — and the retest is landing hours before the latest US Consumer Price Index release.
A 10-year US Treasury yield above 4.6% against near-zero Japanese government bond rates has kept the carry trade one-directional, dragging the yen down more than 10% against the dollar since January and making it the worst-performing major currency of 2024.
The Carry Trade That Keeps Winning The arithmetic is blunt: borrow yen cheaply, park the proceeds in dollar assets yielding more than 4.6% on the 10-year Treasury, collect the spread.
The Bank of Japan's March 2024 rate increase — its first in 17 years — marked a policy shift, but the pace of normalization has been too slow to close the yield gap.
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