Luke Gromen: Japan may need stronger intervention as yen strengthens against U.S. dollar - Traders Union
Luke Gromen: Japan may need stronger intervention as yen strengthens against U.S. dollar - Traders Union
Source: Traders Union
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DW NOTE
Japan's currency interventions have a perfect failure rate — the stronger the jawboning, the weaker the yen gets. The dollar-yen pair responds to rate differentials, not press releases. With the Fed funds rate at 3.63% and the 10-year Treasury at 4.67%, Japan is trying to defend a currency whose government bond yields top out below 1%. You cannot intervene your way out of a structural capital flight.