Japan’s Yen Falls Again Despite $97 Billion Aid. Risk For Bitcoin?
Japan's yen weakened again this week despite roughly $97 billion spent supporting it over the past month. Its slide puts renewed pressure on officials to act, with potential consequences for Bitcoin.
Why Japan's Yen Rescue is Fading
The currency fell to 160.16 yen per dollar on Friday, 28 August, giving up more than half its gains since last month's intervention. A weaker yen makes imports more expensive for Japanese households and businesses.
Japan spent ¥15.4 trillion supporting its currency between 30 July and 26 August. The campaign included rare joint action with the US on 31 July, when both countries bought yen to lift its value.
US interest rates remain higher than Japan's, making dollar investments more attractive. The dollar gained further support this week when Federal Reserve chair Kevin Warsh pledged to bring inflation to target.
How a Stronger Yen Could Hurt Bitcoin
Bitcoin briefly fell below $77,000 after Warsh's speech as investors expected higher US rates.
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