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Yen intervention shows Asia is losing patience with the mighty US dollar
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Low interest rates keep the yen weak against currencies of its major trading partners, including Singapore, where rates are much higher and economic growth is resilient.
PHOTO: EPA-EFE
SINGAPORE – The yen’s sharp rebound earlier this week may have cost some currency traders dearly, but the Japanese currency is still near its multi-decade lows while the fundamental reasons for its weakness have far from disappeared.
The culprit is Japan’s relatively low benchmark interest rates, which are needed to support the economy’s recent ascent from 30 years of deflation and keep interest payments on its massive debt manageable.
