Yen Intervention Futile for Sakakibara as Abenomics Nears Limits
- Mr. Yen says `nothing more foolish' than failed intervention
- Trend is for yen strength as Abenomics near `best-before date'
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The man whose ability to move Japan’s currency earned him the name ‘Mr. Yen’ advises against intervention to halt its appreciation as the effectiveness of Prime Minister Shinzo Abe’s policies fades.
Even if Japan wants a weaker yen, any government action would be futile as “Abenomics is nearing its best-before date,” said Eisuke Sakakibara, in charge of intervention at the Ministry of Finance from 1997 to 1999. He said an expansion of Bank of Japan stimulus would only temporarily slow the yen’s gains to 100 by year-end.