Dollar’s Many Woes Complicate Japan’s Yen Intervention

When it comes to weakening the yen, currency speculators are the least of Japan’s problems.

That’s because when policymakers intervene to limit yen strength, as they did Monday, they square off against a formidable array of forces, including U.S. monetary policy, Chinese reserve managers and global investors from Texas to Tokyo united by one desire: to sell the U.S. dollar.

Investors and market analysts say that explains why prior efforts to weaken the yen against the dollar have failed and why the chances of success this time around are equally slim.

Read the rest of the story: Dollar’s Many Woes Complicate Japan Intervention.

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