SNAPSHOTS

Japan's Sinking Yen Fights to Stay Above Water

MIN READSep 28, 2022 | 15:16 GMT

A photo illustration shows a banknote of the Japanese yen overlapping a banknote of the U.S. dollar.

A photo illustration shows a banknote of the Japanese yen overlapping a banknote of the U.S. dollar.

(Shutterstock)

Efforts by Japan's central bank to prop up the yen against the U.S. dollar will result in public backlash and weaker support for the Japanese government, threatening long-term policy continuity. On Sept. 22, the Bank of Japan (BOJ) intervened in the foreign exchange market by buying yen and selling dollars for the first time in 24 years. The yen-to-dollar rate subsequently slid after BOJ Gov. Haruhiko Kuroda remarked that the bank did not intend to adjust short-term interest rates from the current rate of -0.1%, and Finance Minister Shunichi Suzuki said this intervention was necessary to stabilize the market. Despite the intervention, the yen only briefly strengthened to 142 yen to one U.S. dollar before rising again to roughly 145 yen to the dollar on Sept. 26....

image of globe

Connected Content

Article Search