Despite the BOJ raising its policy rate to its highest level in 31 years, the yen's depreciation trend continues. As views spread that the effects of intervention and interest-rate differentials are limited, authorities are becoming increasingly vigilant.
The BOJ raised its policy rate to its highest level in 31 years, but the yen's depreciation trend continues.
Strong pressure to sell the yen persists even after foreign-exchange intervention and the rate hike, and the impact of interest-rate differentials and the effectiveness of intervention are seen as limited.