The Yen's Lament: Why Intervention Won't Stem the Tide The recent intervention by the US and Japan has been hailed as a historic measure to halt the yen's slide, but it appears to have fallen short of its lofty goals.
The yen continues to trade at multi decade lows, with a current exchange rate of over 159 per dollar. This is hardly surprising, given the yawning gap in returns between Japan and the US.
The classic carry trade remains alive and well, as investors borrow cheaply in yen and invest in higher yielding assets.