Yen Weakness Spurs Haven Shift to Swiss Franc as Japan’s Debt Woes Deepen
The Japanese yen's slide to 157.20 against the dollar has failed to ignite its traditional risk-asset rally. Japan's 240% debt-to-GDP ratio and a $135 billion stimulus package now pressure government bond yields to 1.84%—a 2008 high. Fiscal expansion clashes with the Bank of Japan's intervention whispers.
Meanwhile, the Swiss franc gains traction as a hedge. Unlike past yen weakness, this downturn reflects structural risks: either Japan accepts higher borrowing costs or prolongs financial repression. Cryptocurrencies watch warily—the yen's decline no longer reliably signals risk appetite.