The Japanese yen depreciated viciously to the lowest level in 20 years. Daily experts give two reasons for this
The yen exchange rate has continued to plummet recently. On the afternoon of the 15th, the yen exchange rate was around 126 yen per US dollar, hitting the lowest point in 20 years. In this regard, Japanese economic experts gave two reasons.
According to the news of Niigata TV and Kansai TV in Japan on the 15th, in mid-March, the yen exchange rate was maintained at a level of about 115 yen per US dollar, and it continued to decline for a month after that. Japanese Finance Minister Shunichi Suzuki said that the high prices of imported goods have been passed on to consumers. “Now it can be described as a vicious devaluation of the yen.”
Talking about why the yen continues to fall, Yuren Wakabayashi, a researcher at the Japan Research Institute, gave two reasons: changes in the structure of imports and exports, and the continued expansion of the Japan-US interest rate gap. “Investors are willing to invest in the US dollar with high interest rates, and the yen is constantly being squeezed out, becoming a wave of US dollar investment.” As for how long the yen’s depreciation will continue, Wakabayashi believes that based on the current inflation situation, it will continue for some time.
The “Kyoto Shimbun” pointed out in an editorial that the sharp depreciation of the yen, coupled with the rise in the price of imported goods, continues to oppress people’s daily lives, directly impacting the earnings of Japanese companies, and will continue to have a vicious impact on personal consumption. Japan’s economy has been unable to emerge from a massive financial easing policy for nine years and must now adjust.
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