Why a struggling Japan may have no choice but to put up with a stronger yen

The Japanese yen has been performing well against the US dollar over the past few months. It may continue to hold its own. That may seem odd when Japan is in recession and seeing a new surge in local cases of Covid-19, but the currency market is behaving rationally. In truth, policymakers in Tokyo are likely to feel that the last thing Japan needs right now is a yen that is strong against the US dollar, but Tokyo may have to put up with it. First off, the foreign exchange markets often accord…

Read the original article at South China Morning Post