Yen Weakens, Hits 25-Year Low Against US Dollar
44000 Japanese Yen Converted to US Dollars
Tokyo, Japan - April 18, 2023
The Japanese yen hit a 25-year low against the US dollar on Tuesday, trading at ¥158.10 per dollar. This marks a significant depreciation in the value of the yen, which has been steadily weakening against the dollar in recent months.
The weakening yen is a result of several factors, including the widening interest rate differential between the US and Japan. The Federal Reserve has been raising interest rates in an effort to combat inflation, while the Bank of Japan has kept interest rates near zero to support economic growth. This has made Japanese investments less attractive to foreign investors, leading to a sell-off of the yen.
The weaker yen is a concern for Japanese policymakers, as it could lead to higher import costs and inflation. The government has been intervening in the currency market in an attempt to stabilize the yen, but with limited success.
For consumers, the weaker yen makes travel to Japan more expensive. However, it also makes Japanese exports more competitive in the global market.
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