US-Japan Intervention May Not Sustain Yen's Rise Without BOJ Policy Shift

The recent joint intervention by the U.S. and Japan to raise the yen's value has been met with skepticism by market analysts.

The Wall Street Journal reported that the yen has rebounded from its lowest level in about 40 years, reaching 157 yen per dollar due to the joint effort.

However, experts predict that this effect will not last long unless the Bank of Japan changes its monetary policy.

Nabil Milali, portfolio manager of Edmond de Rothschild, stated, 'Without the Bank of Japan's monetary tightening, the yen's rise is unlikely to continue.'

The BOJ's cautious approach to raising interest rates is a major concern for market analysts, as it could lead to investors moving funds to other currencies with higher interest rates.

In fact, short-term interest rates in the U.S. are about 2.5 percentage points higher than in Japan, and there is a possibility that the Federal Reserve will raise interest rates at its upcoming meeting in September.