Weakened Yen Triggers Fears of Bitcoin Sell-Off
Japan's yen has fallen for the second time this month despite the government spending $97 billion to support it. The currency dropped to 160.16 yen per dollar on Friday, August 28, giving up more than half of its gains since last month's intervention.
The weaker yen makes imports more expensive for Japanese households and businesses. To combat this, Japan spent 15.4 trillion supporting its currency between July 30 and August 26. This included a rare joint action with the US on July 31, when both countries bought yen to lift its value.
US interest rates remain higher than Japan's, making dollar investments more attractive. The dollar gained further support this week when Federal Reserve Chair Kevin Warsh pledged to bring inflation back under control.