Mizuho Says Historic Slump in Yen Is Defying the Rates Rulebook

Mizuho Bank Ltd. said the yen's decline to its lowest levels in decades is affecting how investors predict currency movements using interest rate differentials. The bank noted that traditional models linking exchange rates to the gap between Japanese and foreign interest rates have become less reliable in explaining recent yen performance. Mizuho did not specify which forecasting strategies investors were reconsidering or provide alternative methods for predicting yen moves.

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