Why the Yen Is Weakening Despite Rate Hikes

Episode 125 of The Global Economy Podcast examines one of the most puzzling currency moves of 2026: the Japanese yen falling to 161 against the US dollar even after the Bank of Japan raised interest rates. Lucas and Luna explore the mechanics of the carry trade unwinding, the role of Japan's structural trade deficit, and why currency intervention is failing. They look at concrete data—import prices hitting 2008 highs, a trade-weighted dollar at 120.5—and explain why exporters aren't cheering. Then, a brief word on listener support keeping the show ad-free, before wrapping with what a weaker yen means for global bond markets and emerging Asia. #Yen #BankOfJapan #Currency #CarryTrade #USDJPY #JapanEconomy #ImportPrices #TradeDeficit #MonetaryPolicy #GlobalBonds #EmergingMarkets #FexingoBusiness #BusinessPodcast #EconomicsPodcast #CurrencyMarkets #BOJ #Inflation #Forex Keep every episode free: buymeacoffee.com/fexingo