Japan’s strength produces a weak yen
Currency meddling will prove futile
It does not require a financial detective to work out what is going on. Three sudden surges in the value of the yen, on July 11th, 12th and 17th, have raised suspicions that the Bank of Japan (BoJ) is again intervening in currency markets (see chart). The bursts have left the currency, at ¥156 to the dollar, up by 4% against the greenback and marginally above the 37-year lows it reached earlier this month.
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This article appeared in the Finance & economics section of the print edition under the headline “Currency paradox”
Finance & economics July 20th 2024
- Stocks are on an astonishing run. Yet threats lurk
- Why investors have fallen in love with small American firms
- At last, Wall Street has something to cheer
- Japan’s strength produces a weak yen
- China’s leaders face miserable economic-growth figures
- YIMBY cities show how to build homes and contain rents
- Americans are wrong to wish for an era of stable bipartisanship
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