TOKYO -- The yen has picked up strength to a level not seen in roughly four months, seemingly putting the Bank of Japan's 2% inflation target in jeopardy. Although the central bank is not yet in panic mode, the situation leaves little room for optimism.
This week, the Japanese currency advanced into the 110 yen range against the dollar. Ever since Donald Trump's victory in the U.S. presidential election in November, a weakening yen has propped up export-heavy Japanese firms and corporate earnings, giving the inflation goal a new lease on life. But now that dynamic is heading in the other direction.
