As real US interest rates rise, the Japanese yen rises with them. As the price of risk hedges in the dollar falls (TIPS prices move inversely with yields), the price of the Japanese yen rises as well. That’s the biggest trade-off in world markets at the moment.
Japanese yen driven by TIPS yields
The biggest trade-off in world markets at the moment: as the price of risk hedges in the dollar falls, the Japanese yen rises.
