Why Japan's Currency Is So Volatile?

Japan's recent interest rate hike sent shockwaves through global markets, causing one of the biggest single-day drops in the Nikkei 225 since 1987. 📉 But what triggered this meltdown, and why does it matter to investors worldwide?

For decades, Japan's low interest rates made the yen the go-to currency for a strategy called the "carry trade." Investors borrowed yen at rock-bottom rates and invested it in higher-return assets like U.S. tech stocks or foreign bonds. It seemed like easy money... until now.

When the Bank of Japan (BOJ) unexpectedly raised interest rates, the carry trade's house of cards came tumbling down. Investors scrambled to sell off assets, repay yen loans, and minimize their losses. This mass sell-off created a domino effect, triggering panic in markets from New York to Tokyo.

In this video, we break it all down in simple terms:
🔹 What is the carry trade, and why does it matter?
🔹 How Japan's rate hike led to a global panic.
🔹 The surprising impact on everyday Japanese citizens and global tourists.
🔹 Why central bank decisions have such a massive ripple effect worldwide.

This isn't just about finance; it's a story about human psychology, market behavior, and how a single decision can change everything. Join us as we explore what the "Great Unwind" means for the future of investing and what lessons we can learn from this financial shockwave.

#JapanRateHike #CarryTrade #GlobalMarkets #StockMarketCrash #FinanceExplained #Investing101