Breakingviews – Tokyo blinks in game of forex chicken
The Japanese government has grudgingly responded to the Federal Reserve’s hiking cycle by moving to prop up the staggering yen , the first such intervention since 1998 . The “decisive action”, in the words of Vice Finance Minister for International Affairs Masato Kanda, caused the currency to pop up to 140 per dollar. But the country’s economic outlook makes such intervention unlikely to work.

Breakingviews – Tokyo blinks in game of forex chicken

The Japanese government has grudgingly responded to the Federal Reserve’s hiking cycle by moving to prop up the staggering yen , the first such intervention since 1998 . The “decisive action”, in the words of Vice Finance Minister for International Affairs Masato Kanda, caused the currency to pop up to 140 per dollar. But the country’s economic outlook makes such intervention unlikely to work.

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