BlackRock Global Fixed Income Chief Investment Officer: The Yen's rebound relies on hawkish signals from the Bank of Japan.

Rick Rieder, BlackRock's Global Chief Investment Officer for Fixed Income, stated that government intervention alone is not enough to support the yen; the Bank of Japan also needs to send hawkish signals. The yen is once again approaching 160 yen per dollar this week, nearing a 40-year low. In his media interview, Rieder mentioned that currency intervention is not the "most lasting" way to drive a rebound in the yen. "Over the years, I've seen quite a few interventions. For it to be effective, you have to deploy a significant amount of firepower and maintain it," Rieder said. "Monetary policy must reach a point where people believe you will raise interest rates and will take a hawkish stance when needed. I believe Japan needs to demonstrate this."