FOCUS: Japan’s intervention should not stem the fall of the yen

Japan’s monetary intervention will likely prove ineffective in reversing the yen’s underlying weakness against the US dollar, even though its first attempt in 24 years in the foreign exchange market to strengthen its currency took immediate effect. The dollar briefly dipped below 141 yen from a 24-year high near 146 yen on Thursday after the government intervened in the market to stem the yen’s slide. The stock took the market somewhat by surprise, even though Finance Minister Shunichi Suzuki’s repeated warnings against the yen’s recent rapid decline to 24-year lows against the US currency…