Yen Falls Back to Record Low After Coordinated Intervention Fails
The yen's exchange rate has fallen to the 160-yen range per dollar for the second time this year, despite a coordinated currency intervention by Japan and the US in late July.
The intervention saw approximately 3 trillion yen invested to prop up the currency after it temporarily fell to a record low of 163.99 yen per dollar in July.
However, the trend has continued with the yen falling further, reaching 160 yen per dollar on August 28th in the New York foreign exchange market following a speech by Federal Reserve Chairman Kevin Warsh hinting at possible further interest rate hikes.
Market participants are questioning the long-term effectiveness of the intervention due to persistent expectations of high US interest rates and the yen's inability to sustain its rebound trend.