Why Japan is propping up the Yen with US help

The yen’s weakness has become a growing issue for Japan’s policymakers, given its role in driving up import prices and household living costs. It’s also become a worry for the US.Japanese authorities spent almost US$74 billion in late April to support the currency following two months of steep declines. The resulting rebound was short-lived, however, and by Jul 23 the yen had slid further to its weakest against the dollar since 1986.This prompted one of the most dramatic interventions in global currency markets in decades - a joint Japanese-US effort to bolster the yen, accompanied by a joint warning that the two nations wouldn’t hesitate to move again to defend its value if required.Why is the yen weak?Several factors are weighing on the yen. Chief among them is the gap between Japan’s ul