Yen hits 34-year low, defying end of negative rates
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The Bank of Japan (BoJ) raised interest rates from -0.1% to a band from zero to 0.1% on March 19, ending an era of negative interest rates. However, Japan still has the lowest interest rates in the world. The move confirms the central bank's role in supporting the US dollar. Negative rates were not a stimulus to the economy but served as a tax on commercial banks, which passed the penalty onto borrowers. The years of zero and negative rates have forced small banks to merge with bigger banks, harming the Japanese economy. The yen has weakened further since the rate rise was announced, reaching its weakest level in 34 years. The Bank of Japan continues to expand credit creation faster than the US Federal Reserve, which weakens the value of the yen against the US dollar. The central bank's actions are more influential than interest rates. The Bank of Japan's role is to prop up the US dollar and support the dominance of the dollar in the face of challenges from other countries. The yen will stay weak as long as the Bank of Japan continues to expand credit creation faster than the US Federal Reserve.

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https://asiatimes.com/2024/04/yen-hits-34-year-low-defying-end-of-negative-rates/