Japan's $74 billion yen intervention faces uphill battle against Fed-driven rate differentials
By
Lee Ying Shan
Summary
Japan spent $74 billion on yen intervention to prop up its currency, but analysts say the real driver of yen weakness is the U.S. Federal Reserve's restrictive monetary policy and wide interest rate differentials between the U.S. and Japan. The yen has hit a 40-year low against the dollar, falling about 3.9% this year, while remaining more stable against the euro. Markets view the Bank of Japan as lagging behind other central banks, complicating the effectiveness of unilateral intervention.
Source
bskyJapan's $74 billion yen intervention faces uphill battle against Fed-driven rate differentialscnbc.comKey quotes
· 2 pulledIf we look at the yen-euro, for example, it is more stable
Markets still view the BOJ as lagging behind other central banks
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