TOKYO -- In the summer of 2024, global financial markets were rocked by the unwinding of yen carry trades, in which investors borrow the Japanese currency at low interest rates to buy assets in countries with higher yields.

Japanese stocks renewed their all-time highs this year before paring gains, partly due to a cheap yen. (Nikkei montage/Source photos by Getty Images and Akira Kodaka)
Japan's crippled currency seen having limited impact on stocks, unlike early this year