10 Hrs
Source:
الاقتصادية
Yen support fails amid fiscal doubts
Japan and the United States' attempt to intervene and support the yen proved limited, as they failed to prevent its decline to the lowest level in nearly 40 years, reaching 164 yen per dollar. The yen's fall is attributed to Japan's waning "soft power" in the economy, which relates to market confidence in its fiscal and monetary policies, and Japan's lack of independent management of its economic policy. The two countries' intervention aims to correct the currency's exchange rate, but the fair value is estimated at around 162 yen per dollar, amid expectations of rising inflation and the Bank of Japan's delay in raising interest rates. The future of the currency is raising concerns among investors, with forecasts of further monetary steps amid doubts over the Bank of Japan's ability to improve the currency's situation unless it moves quickly to raise interest rates in September.
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