Yen interventions pin policy gaps as US role raises eyebrows

Market watchers say Japan’s yen weakness reflects policy misalignment rather than disorderly markets, with the latest intervention around ¥155–¥160 briefly stabilizing the currency while the BoJ kept rates unchanged. The move’s lasting impact is unclear, given Japan’s energy dependence, fiscal ambitions, and a policy stance seen as too accommodative. The unusually active US participation—financing via the Fed’s facilities and using euros to buy yen—deviates from past, more symmetric G7 actions and raises questions about motives (including curbing US yield pressures). Overall, durable relief will require credible macro reforms rather than FX band-aids.