Published on June 28, 2024 at 06:45. / Modified on June 28, 2024 at 08:09.
The Japanese currency has crossed the symbolic mark of 160 yen per dollar. During the night from Wednesday to Thursday, it reached a low of 160.82 yen per dollar. A threshold that it had not approached since 1986, when the speculative real estate and financial bubble burst in Japan. The currency is also trading at its lowest levels against the euro since the European currency was put into circulation. So many indicators which raise questions about new interventions by the Japanese authorities to support the national currency. The weakness of the yen, which benefits tourists visiting Japan, on the other hand, weighs on household consumption which continues to decline. Although it benefits the exporting industry, this position nevertheless makes imports of raw materials, energy and manufactured products more expensive. In April, the country posted a trade balance deficit. Last year, the country’s growth stood at 1.9%, after 1% in 2022. But Japan had given up its place as the world’s third largest economy, its nominal GDP (not adjusted for the effects of inflation ) amounting to 4200 billion dollars, compared to around 4500 billion dollars for Germany.
“We are observing the movements with a great sense of urgency, we are analyzing the factors behind these movements and we will take the necessary measures,” Finance Minister Shunichi Suzuki declared on Thursday, while specifying that “rapid movements and unilateral are not desirable,” reports the Reuters agency. Earlier this week, Vice Minister Masato Kanda warned: “We are ready to take appropriate measures at any time in the event of excessive fluctuations based on speculation.” However, these officials did not give any indication regarding a threshold from which measures would be put in place.
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