20230804 market spotlight

The yen's fall has put investors on alert about another possible currency intervention by the Bank of Japan and the government. (Nikkei montage/Satoko Kawasaki)

Bank of Japan's policy adjustment hasn't stopped the yen's slide

Japan-U.S. yield gap remains wide after Treasury rates shoot up

TOKYO -- A week ago, global markets braced for a higher yen as Bank of Japan loosened its grip on long-term interest rates. Instead, the currency fell to its lowest point in nearly a month.

The surprise result reflected factors outside the BOJ's control. Even as the Japanese central bank took a less dovish stance, longer-term U.S. Treasury rates rose, adding to the appeal of the dollar.

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