Yen Intervention Exceeds $72 Billion Amid Weak Currency Struggles

Japan has deployed over 11.7 trillion yen ($72.8 billion) to support the yen, yet it remains weak at around 160 against the dollar. Following a recent rate hike by the Bank of Japan (BOJ) to a more than three-decade high, the expected impact has been limited. The yield on 10-year Japanese Government Bonds (JGBs) is at 2.64%, compared to 4.451% for 10-year U.S. Treasury yields, maintaining attractiveness for carry trades. The BOJ's dovish policy stance and political factors further complicate the yen's recovery efforts.