What effect do rising interest rates typically have on the value of the yen in the foreign exchange market?

When interest rates rise in Japan, the value of the yen usually increases in the foreign exchange market. This happens because higher interest rates offer better returns on investments in Japan, attracting foreign investors who want to take advantage of these opportunities. As more people buy yen to invest in Japan, demand for the currency goes up, which raises its value. For example, if a foreign investor wants to buy Japanese bonds that now have higher interest rates, they will need to exchange their currency for yen, thus increasing the yen's value. In summary, rising interest rates make the yen more attractive, which generally leads to an increase in its value.