π Yen keeps dropping despite big currency moves
The Japanese yen has started sliding again over the last two weeks, losing ground after massive US and Japan interventions near four-decade lows. The currency briefly hit 155 per dollar after late July intervention but is now trading around 159 to the dollar. This renewed decline is moving towards the 160 yen level, which pressures officials in Tokyo and Washington. The yen's future hinges on the Fed's policy and the Bank of Japan's interest rate hikes. The US dollar remains strong against the yen due to the favorable carry trade. π