Rick Rieder, chief investment officer for global fixed income at BlackRock, said on August 13, 2026 that currency interventions are not a durable solution to strengthen the yen. U.S. and Japanese authorities carried out their first coordinated intervention since 1998 in August 2026, temporarily lifting the yen from four-decade lows near 164 per dollar back toward 160. The underlying problem lies in the interest rate gap: the dollar pays investors far more than the yen, pushing capital flows toward dollar-denominated assets. Rieder argues that only a credible commitment by the Bank of Japan to monetary tightening can sustainably reverse this trend, without requiring direct intervention in currency markets.
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