Japanese Yen

Why is the Japanese Yen So Weak? Exploring the Recent Currency Trends

Discover why the Japanese Yen is facing a weakening trend against the US Dollar and what Japan is doing about it!

The Japanese Yen has been experiencing a period of weakness, despite Japan's first interest rate hike since 2007 and the country's positive economic outlook. Trading at its weakest level of 153.24 per dollar on April 10, the yen's decline is causing concern. Finance Minister Shunichi Suzuki reiterated Japan's stance against an excessively weak yen, analyzing the factors driving the currency's fall. The government is closely monitoring the situation and considering all options to address the volatile movements in the yen-dollar exchange rate.

During the Asian session, the Japanese Yen has been hovering in a narrow trading range against the US Dollar, indicating a period of consolidation. Masato Kanda, vice finance minister for international affairs, emphasized that Japan is ready to take necessary actions in response to the yen's sharp decline. The lack of intervention in the currency market as the yen slid past 153 against the dollar for the first time since 1990 has left traders on edge, awaiting potential market signals from Japan.

The current exchange rate of S$1 to 113.21 yen marks a new high for the Singapore Dollar against the Japanese Yen. This development is favorable for Japanese exporters, who stand to benefit from increased profits due to currency exchange rates. Japanese companies selling goods globally in non-yen currencies will see a significant boon in their earnings. As the yen continues to weaken, Japan remains vigilant and open to implementing various measures to stabilize its currency against the US Dollar.