Yen retreats after US-Japan intervention, prompting doubts about its lasting impact
The yen has given back roughly half of the gains from the recent US-Japan currency intervention, leaving analysts uncertain about the move’s durability.
Following the joint effort by the United States and Japan, the yen rose from about 164 per dollar to 155, but it has since slipped back to around 159. A strategist from Russell Investments told one outlet that further action will be needed for a sustained recovery. Meanwhile, a Pioneer Investments strategist said traders doubt a stronger yen will emerge without additional policy measures, noting that market participants now see a 50% chance of a Bank of Japan rate hike.
Why it matters
The yen’s reversal undermines confidence in the US-Japan intervention and could affect global currency markets.
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