Japan intervenes again to support yen amid pressure from interest rate gaps and market speculation.

Japan's Ministry of Finance reportedly intervened twice recently to strengthen the yen, spending up to $35 billion in late April after the currency weakened past 160 yen per dollar. Despite these interventions, the yen's weakness persists due to large interest rate differences between the U.S. Federal Reserve and the Bank of Japan, which encourages carry trades against the yen. The Bank of Japan faces a dilemma: raising rates could strengthen the yen but hurt Japan's fragile economy, while interventions alone have limited lasting impact. Market watchers expect ongoing tension between Japan's monetary policy and currency stabilization efforts.