Forex intervention works in the short term, but it’s hard to change the long-term direction of exchange rates. The US-Japan joint intervention on the yen is not on the same level as the 1997 Asian Financial Crisis. Back in 1997, it was a combination of a 'currency crisis + external debt crisis + banking crisis': Asian countries had insufficient foreign exchange reserves, excessive dollar-denominated debt, and capital flight triggered a collapse of the financial system. The current yen issue is essentially 'exchange rate pressure caused by the US-Japan interest rate differential': Japan’s financial system remains stable, and the intervention is more about preventing excessive market volatility and curbing one-sided speculation. What would truly help the yen is actually a Fed rate cut/BOJ rate hike/sustained growth in Japan’s economy. #Yen #USD #ForexMarket #BOJ #FederalReserve #GlobalFinance #AsianEconomy #MacroEconomics