Why Japan's intervention and rate hike have not boosted the yen much
Yen struggles near 160 as rate gaps and policy signals keep pressure high See why intervention may not be enough—and what could help the yen recover
Japan has spent more than $72 billion on foreignexchange intervention and the Bank of Japan has raised interest rates, but the yen still remains near 160 per dollar.
Analysts say the currency is being held back by a wide gap between U.S. and Japanese bond yields, which keeps carry trades attractive. Political signals from Prime Minister Sanae Takaichi's government, which favors supportive economic policy, are also limiting expectations for tighter monetary conditions.
The article notes that intervention may still happen in the short term if volatility rises, but longerterm factors such as potential foreign investment into Japan and easing energy import pressures could help support the yen.