Yen Hits 34-Year Low

The yen hit 153 to the dollar late Wednesday 10 April, a 34-year low.

The yen’s depreciation is thought to be tied to higher-than-anticipated inflation for the U.S. in March, with the Consumer Price Index rising by 0.4% over that month, making it less likely that the Federal Reserve (the U.S. central bank) will quickly move to cut interest rates.

Japan’s Vice Minister of Finance for International Affairs Masato Kanda said on the morning of Thursday 11 April that the government will take action to stop the depreciation, indicating that all options are being considered.

The yen’s depreciation has both positive and negative consequences for Japan’s economy. It is a boon to exporters and the tourism industry, as visitors see their own currencies go farther.

But Japan is also a nation heavily dependent on imports for energy and food, meaning a weak yen contributes to inflation.

Image:
Japanexperterna.se

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