Reported 6 months ago
The yen rebounded after weakening to a level that raised suspicion of intervention by Japan to support the currency. Despite reaching a four-week low against the dollar, the yen regained 0.4% to 157 after falling to 157.71. The sustained weakness is attributed to the yield gap between Japan and other major economies, causing money to move into assets with higher potential returns. Japanese bond yields have been rising, fueling speculation about additional interest rate hikes by the Bank of Japan and the limited impact of intervention. The article also highlights the potential challenges Japan may face in intervening in the currency market due to global agreements and remarks by key officials.
Source: YAHOO