The Bank of Japan meeting did not benefit the yen, and the conditions for implementing global arbitrage transactions are once again in place. Although the central bank implemented the tightening of policies called for by US Treasury Secretary Scott Bessent, and which traders had already calculated, many factors were bad for the yen: the decision to raise interest rates was opposed by two policy makers, and no one advocated a larger rate hike; although the central bank stated that it would continue to raise interest rates, it did not give a time point for interest rate hikes, and failed to release an urgent signal of interest rate hikes. Japan's benchmark interest rate is still far below the neutral interest rate level. If interest rates are not raised continuously, the weak pattern of the yen will continue. Among the G10 economies, currently only the Swiss franc has lower interest rates, and the Swiss central bank will hold a meeting next week. If the SNB repeats its trend of maintaining zero interest rates, exchange rate fluctuations corresponding to the two major financing currencies will remain low.

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