Durability of Yen's Recovery Depends on Monetary, Fiscal Policy
Dow Jones08-03
1357 GMT - Japan's monetary and fiscal policy will determine whether the yen's recovery is sustained following a joint U.S.-Japan currency intervention last week, Rabobank's Jane Foley says in a note. "While we are optimistic regarding the changes to Japan's economy in recent years, the market will likely have to become more confident that the BOJ can hasten the pace of rate hikes and see more reassurances on fiscal prudence for the yen to recover significant ground." However, the threat of further interventions and a weaker dollar should prevent the yen from falling too far for now, she says. The dollar falls 0.7% to 156.44 yen after reaching a three-month low of 155.21 overnight, LSEG data show.
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