The Yen Hits 150 To The Dollar, Spurring Investment In Japan

The yen is currently around 150 to the U.S. Dollar, continuing a trend of depreciation that began in early 2022.

Until 2022, when the yen also hit 150 to the dollar, the last time the yen traded at that level was in 1990.

This year’s low of 151.74 to the dollar was set on 31 October and it is matched by increasing weakness against other currencies, with a current rate of almost 162 yen to the euro.

The weak yen is a large factor in the continued rapid return of inbound tourism following the lifting of Covid restrictions, as well as increased international investment in real estate, essentially making all purchases in Japan less expensive for foreign buyers.

However, a weak yen also makes everything Japan imports more expensive from a domestic perspective, a serious issue for a nation that relies on the outside world for most of its energy resources and much of its food.

Sources:
Nikkei Asia – 8 November 2023
BBC – 28 October 2022

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