Weak Yen Now Is Key to Stronger Currency and BOJ Pivot Later
- Economists, analysts see 150 as possible intervention trigger
- Amid less angst over impact of softer yen, BOJ could tweak YCC
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Japanese policymakers and business leaders appear far more sanguine about the recent slide in the yen than they were about last year’s intervention-triggering collapse — a sign they see the weakness as temporary.
While the currency is at an almost eight-month low against the dollar and at its weakest against the euro in 15 years, the panic of 2022 doesn’t appear to be coursing through the veins of officials, consumers and company executives yet. Last year, Japan spent $65 billion on direct purchases of the yen to help drag it off a three-decade low versus the greenback.