Japan yen interventions face uphill battle against structural weakness

Currencies Interest rate differentials, trade and digital deficits behind yen’s prolonged slump Bank of Japan Gov. Kazuo Ueno. The view that the central bank is unlikely to raise rates has weakened the yen.  (Photo by Nanami Sato) RYO SAEKI and KENICHI ONOZAWA TOKYO — Japanese officials intervened Thursday in the foreign exchange market to prop up the yen once again, but the limits of this play are becoming clear in the yen’s repeated dips below 160 to the dollar, caused by underlying structural problems like interest rate differentials as well as nagging trade deficits.