Yen's Weakness Rooted in Structural Factors, Not Just Interest Rates, Says Ex-Finance Official

Rintaro Tamaki Cautions Against Expecting Currency Intervention to Resolve Underlying Issues

Former vice finance minister for international affairs, Rintaro Tamaki, suggests that the yen's weakness might be due to structural factors such as Japan's worsening fiscal position, not just interest rate differentials between Japan and the U.S.
Tamaki believes that any currency intervention by authorities would not help turn around the market tide, although smoothing operations may be acceptable.
Tamaki points to confidence in Japan's public finances, falling competitiveness, aging population, and dwindling labor force as possible reasons depriving Japanese authorities of the will to conduct bold policy.
Tamaki questions the attractiveness of investing in Japan from the perspective of overseas investors.
Tamaki, while in office, intervened in the market after the March 2011 earthquake and tsunami in Japan, but clarifies that it was a smoothing operation, not a means to change currency levels.