Placeholder while article actions load
The yen has slipped to two-decade lows against the dollar largely because Japan has a different view on inflation than its global peers. The Bank of Japan stands out among major central banks with its commitment to maintain rock-bottom interest rates to revive inflation on a sustainable basis (after years of trying to fend off deflation), even as surging prices in most of the rest of the world spur the US Federal Reserve to roll back stimulus and raise rates. A weaker yen can both benefit and harm the economy, businesses and consumers. The steepness of its slide, however, has raised questions about the BOJ’s policy and the possibility of government intervention in currency markets.
1. Why is the yen so weak?
The biggest reason is the move toward higher interest rates in the US. That makes dollar-denominated assets more attractive for investors seeking higher returns. The yield on 10-year notes…
