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The BOJ’s recent rate hikes, the first in 17 years, have ended the 0% interest rate policy, causing the Yen to strengthen. As the Yen appreciates, investors face pressure to sell assets like US stocks and bonds to cover Yen loans, exacerbating market instability.
Additionally, poor US employment data has heightened recession fears, prompting investors to seek safe-haven assets like the Yen. This has further fueled market volatility.
Experts suggest that while the current market adjustment is significant, it may not have a long-term impact, especially as many global enterprises report strong Q2 results. The situation remains dynamic, with future BOJ policy decisions likely influencing global markets.
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Source: Vietnam Insider