Yen Intervention Fails to Shift Forces Weighing on Currency

The joint US-Japan intervention to prop up the yen has created an opportunity for carry traders to sell the currency.

Last month's historic action had little effect on the forces weighing on the yen, which slid back toward 160 per dollar in less than two weeks.

Investors can take advantage of the wide gap between interest rates in Japan and elsewhere by borrowing low-yielding yen and using the money to buy higher-yielding assets.

The carry trade strategy involves exploiting this difference in yields, and it appears to be a winning bet for some investors.