đŻđ” Yen Falls Despite Nearly $97B Japan Support
Japanâs massive effort to support the yen is struggling to stop the currencyâs slide. Tokyo spent a record „15.4 trillion (about $96.5 billion) on currency intervention between July 30 and August 26, yet the yen has again weakened beyond „160 per dollar.
The key pressure is the widening U.S.âJapan rate gap. Freshly hawkish signals from the Federal Reserve have strengthened the dollar and reduced expectations that the gap will narrow soon.
Bottom line: Japan can spend billions defending the yen, but markets ultimately want to see stronger underlying support from monetary policy and interest-rate differentials.
#Yen #Japan #USDJPY #YenFallsDespite$97BJapanSupport #Economy
Japanâs massive effort to support the yen is struggling to stop the currencyâs slide. Tokyo spent a record „15.4 trillion (about $96.5 billion) on currency intervention between July 30 and August 26, yet the yen has again weakened beyond „160 per dollar.
The key pressure is the widening U.S.âJapan rate gap. Freshly hawkish signals from the Federal Reserve have strengthened the dollar and reduced expectations that the gap will narrow soon.
Bottom line: Japan can spend billions defending the yen, but markets ultimately want to see stronger underlying support from monetary policy and interest-rate differentials.
#Yen #Japan #USDJPY #YenFallsDespite$97BJapanSupport #Economy