TOKYO -- The Bank of Japan's first rate hike in 17 years may be a turning point in the country's decades-long history of deflation, but so far it has been regarded as a baby step by those engaged in the cross border investments known as carry trades -- and that has weakened the yen.
One of the most popular carry trades involves borrowing the Japanese currency to invest in countries offering higher yields. Even after the BOJ's rate hike, Japan's bond yields largely remain far lower than those in other advanced economies, failing to temper the speculative strategies.
.jpg?width=178&fit=cover&gravity=faces&dpr=2&quality=medium&source=nar-cms&format=auto&height=100)
