• The Japanese yen is the third most traded currency in the world after the US dollar and the euro.
  • The yen, usually a safe haven during market stress, fell to a 24-year low against the dollar in mid-2022.
  • The fall of the yen was caused by the refusal of the Bank of Japan (BoJ) to follow the example of other central banks in raising interest rates.
  • The Bank of Japan set Japan’s inflation target at 2% after decades of economic-damaging deflation.