US dollar/yen basis blows out to –100 on negative rates

Bank of Japan policy adds to domestic banks’ dollar funding dilemma


The Bank of Japan's introduction of a negative interest rate policy has pushed the dollar/yen cross-currency basis to –100 basis points for the first time in four years, making it more expensive for Japan's banks to raise US dollar funding to invest in higher yielding assets abroad.

The central bank's move to apply a negative interest rate to some dealer account balances at the Bank of Japan has made it more difficult for domestic banks to obtain sufficient yield in yen-denominated investments

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here