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Japan has deployed more than $70 billion in direct currency intervention and followed it with a rate hike, yet the yen has returned to the 160-per-dollar level that prompted Tokyo to act in the first place.
The recurrence at that threshold is the story: the spending slowed the slide, but it did not reverse the underlying pressure.
What Yen Intervention Is, and Why Tokyo Uses It Currency intervention means a government enters the foreign-exchange market directly — selling its holdings of foreign currency, usually U.S.
The goal is to push up demand for the yen and lift its exchange rate. Japan has used this tool before, and the 160 level has served as a visible line: cross it, and Tokyo reaches for the chequebook.
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