Bloomberg reports that since the Bank of Japan (BOJ) abandoned negative interest rates and began its rate-hiking cycle in March 2024, the Japanese Yen's appeal as a funding currency for global carry trades has significantly diminished. The rising cost of borrowing JPY and narrowing arbitrage spreads have led some investors to shift towards other low-cost funding currencies, such as the Swiss Franc. Concurrently, Japanese authorities have intervened in the market multiple times since 2022, notably a joint intervention with the United States on July 31 this year, further increasing exchange rate risks for carry traders. From July to August 2024, following the BOJ's rate hike and Governor Kazuo Ueda's hints of further policy tightening, a large-scale unwinding of carry trades occurred, resulting in an approximately 8% appreciation of the JPY against the USD, a roughly 13% decline in the Mexican Peso against the JPY, and a 19% plunge in the Nikkei 225 index, signaling potential severe turbulence in global financial markets.