Japanese Yen Stays Weak as Interventions Fail to Offset Poor Fundamentals

Dow Jones08-12

0928 GMT - The Japanese yen's renewed falls in recent days suggests market participants remain unconvinced that interventions will prove successful in strengthening the yen without a change in fundamentals, MUFG Bank's Lee Hardman says in a note. If there is no change in fundamentals, speculators could rebuild bets on a weaker yen as stable financial market conditions remain supportive for carry trades, where investors borrow in a low-yielding currency to invest in one with higher yields, he says. One potential change in fundamentals is the prospect of the Bank of Japan accelerating interest-rate rises, although this isn't currently helping the yen, he says. The dollar falls 0.2% to 158.96 yen after earlier reaching a 12-day high of 159.45, according to LSEG.

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