Japan and US Team Up to Prop Up Yen in Rare Joint Intervention

Japan's finance minister, Satsuki Katayama, has been warning that Tokyo is ready to intervene in currency markets again after the yen hit a four-decade low last week.

Last week, Japan staged its first joint intervention with the US in 15 years, and so far, it seems to be working. The yen's strength is holding up, but experts have doubts about how long this will last.

UBS strategists Teck Leng Tan and Dominic Schnider wrote that Japan's policy mix remains unlikely to generate sustained yen strength, and other experts agree that unless Japan addresses the structural forces driving the weakness in yen, the intervention's effects are likely to be short-lived.