IMF attributes Japan's yen decline to interest-rate differential, citing broad dollar rally and potential for currency intervention.
The International Monetary Fund (IMF) says the yen's recent declines, while significant, mainly reflect the interest-rate differential between Japan and the U.S., suggesting that the moves are largely in line with economic fundamentals. The broad dollar rally due to reduced expectations of a near-term U.S. interest rate cut has pushed the yen to a 34-year low, increasing the likelihood of currency intervention by Japanese authorities.
April 18, 2024
6 Articles