The Japanese yen has fallen sharply against the dollar this year. Its roughly 15% decline is twice that of the euro. Markets are abuzz. Should Japan intervene to staunch the yen’s decline? No. Will Japan intervene? I’m sceptical for now. The yen is falling for obvious reasons. The Federal Reserve is tightening while Japan is not changing the stance of its highly accommodative monetary policy. Interest differentials favouring dollar placements against the yen are sharply widening. Japan is highly dependent on foreign energy but the US is self-sufficient. {chart} Notwithstanding, there is a hue and cry from the ... (full story)