Business
The U.S. Helped Prop Up the Yen. Can It Last?
A rare joint U.S.-Japan currency intervention has helped lift the beleaguered yen off a multi-decade low. It will be an uphill battle keeping it there, analysts say.
The U.S.’s involvement sends a stronger message to investors who have been betting against the yen. Japan’s solo interventions in recent months have done little to halt the currency’s slide.
Still, there are a number of economic forces dragging down the currency. The Bank of Japan has been slow to raise interest rates, the government is loosening fiscal policy, and higher energy prices unleashed by the war in the Middle East are weighing on Japan’s terms-of-trade.
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