Recently, the US and Japan have rarely joined forces to interfere in the foreign exchange market, drawing attention from the global market. However, after intervention at the end of July pushed the yen exchange rate to 155, by August 20, the exchange rate of the yen against the US dollar once again approached 159. According to Morgan Stanley's statistics, the current exchange rate of the yen is about 40% lower than the long-term average since the mid-80s of the last century. In response, Paul Shelder, the former vice chairman of S&P Global and a well-known economist, said in an exclusive interview with reporters that foreign exchange intervention can only “buy time” in the short term, and that the long-term trend of the yen ultimately still depends on the fundamentals of the US and Japan's monetary policy and economic growth expectations. Shelder predicts that the Bank of Japan will raise interest rates by 25 basis points at the September meeting, while the long-term development of the Japanese economy still faces multiple structural challenges such as shrinking population, missed AI dividends, and geopolitical frictions.

Recently, the US and Japan have rarely joined forces to interfere in the foreign exchange market, drawing attention from the global market. However, after intervention at the end of July pushed the yen exchange rate to 155, by August 20, the exchange rate of the yen against the US dollar once again approached 159. According to Morgan Stanley's statistics, the current yen exchange rate is about 40% lower than the long-term average since the mid-80s of the last century. In response, Paul Shelder, the former vice chairman of S&P Global and a well-known economist, said in an exclusive interview with reporters that foreign exchange intervention can only “buy time” in the short term, and that the long-term trend of the yen ultimately still depends on the fundamentals of the US and Japan's monetary policy and economic growth expectations. Shelder predicts that the Bank of Japan will raise interest rates by 25 basis points at the September meeting, while the long-term development of the Japanese economy still faces multiple structural challenges such as shrinking population, missed AI dividends, and geopolitical frictions.