Japan Intervenes to Stabilize Yen, BOJ Meeting Looms
Japan’s government is keeping a close eye on the yen’s wild ride, and is ready to step in to keep it from going too far.
The Bank of Japan (BOJ) has been keeping interest rates super low for a long time, but that’s making the yen weak. This is bad news for Japan, because it makes imports more expensive, which can lead to inflation.
Last week, the yen dropped to a 38-year low, and the government stepped in to buy yen and sell dollars. The government’s intervention helped to push the yen up, but it’s still hovering around the 160 yen to the dollar mark.
What’s Next?
The BOJ is meeting next week, and everyone is watching to see if they will raise interest rates. This would be a big deal, because it would mean a change in Japan’s monetary policy. If the BOJ does raise rates, it could help to strengthen the yen and make the Japanese economy more stable.
So, keep your eyes peeled! The next few weeks will be interesting ones for the yen and the Japanese economy.
