Japan’s Been Spending Billions To Slow The Yen’s Slide. It’s Not Working

Russell Burns

3 months ago4:58 mins

Japan’s Been Spending Billions To Slow The Yen’s Slide. It’s Not Working

On Friday (and possibly again on Monday), Japan intervened in the currency market, buying yen for the second-straight month, in an attempt to slow its rapid decline. It's an unusual move for Japan: the last time it intervened in the foreign-exchange market was after the Fukushima nuclear disaster in 2011, when policymakers sold yen to contain its rapid climb. So, given the unusual nature of this kind of move, it’s worth considering why Japan’s doing this now and what the opportunity is.

What’s going on with the yen?

The yen has been at 32-year lows of late and it’s been the weakest of the major currencies this year, having fallen 29% against the super-strong US dollar, and even declining 8% against the floundering British pound.

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