Analytics

Why the Yen Is So Weak and What That Means for Japan

Bloomberg reports the yen has continued to languish near its historic low versus the dollar, mainly because interest rates in Japan remain much lower than those in the US and elsewhere, diminishing the currency’s relative allure.
Why the Yen Is So Weak and What That Means for Japan
The downward pressure has persisted even after the Bank of Japan raised interest rates on March 19 for the first time in 17 years. The yen’s decline has both benefited and harmed the economy, businesses and consumers. Japanese policymakers remain on guard against the possibility they may have to intervene to support the currency, as they did in 2022. Why... ...

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