1 month ago

Yen Hits Record Lows in Trade-Weighted Gauge

Yen Hits Record Lows in Trade-Weighted Gauge
Yen’s Slump Extends Beyond Dollar and Stokes Inflation Fears · livemint.com

The yen, Japan's currency, has been getting weaker not just against the dollar but also against other important currencies like the euro and sterling.

This is causing problems because it makes imports more expensive, which can lead to higher prices for goods in Japan.

The Bank of Japan has been trying to manage this by raising interest rates and even spending a lot of money to support the yen, but it hasn't been very successful so far.

Experts are worried and think more drastic measures might be needed to stabilize the yen and protect Japan's economy.

Key facts

Nominal Effective Exchange Rate Index
Measures the yen against a trade-weighted basket of currencies.
Yen's Weakness
Extended slide to fresh record lows this year.
Bank of Japan's Benchmark Rate
Raised to 1% in June, the highest in 31 years.
Market Intervention
Authorities spent ¥11.73 trillion ($71.9 billion) between April 28 and May 27.
Yen's Lowest Level
Beyond 163 per dollar, the lowest since 1986.

Quotes

Ugo Lancioni

Senior portfolio manager at Neuberger

“"The yen’s real value, not only against the dollar but broadly against a basket of currencies, has continued to decline, which could be a source of concern for the authorities,"”
livemint.com

Sources

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