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© KYODODollar rises to highest level against yen since June 2015; stocks fall
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3RENSHO
Kyo wa heiwa dayo ne Today 06:14 am JST
"In the photo the dollar should be on top not underneath the yen."
Why should it?
Frank Ellis
@ Reckless.
The problem is tourists are unable to enter Japan or haven't you been keeping up with the news?
Additionally, Japanese will be more than less likely to travel to the US now because they'll be paying higher prices for everything.
It's one reason Hawaii isn't seeing a resurgence of Japanese visitors.
Kyo wa heiwa dayo ne
In the photo the dollar should be on top not underneath the yen.
Now if Japan could just get with the program and open up to tourist the Japanese economy would be better.
But then there's the new variant XE to freak out about.
I wouldn't say that there's a fair comparison to USA an Japan's dealing with covid as both countries cultures are extremely different.
Michael Machida
I have no money. So Im safe.
CrashTestDummy
In related news, inflation is skyrocketing in the US to levels never seen before.
socrateos
Here is another reason why this is not a big deal.
Exchange rates are relevant only to particular segments of national economy, namely, trade. It is irrelevant to the national economy as a whole. When you do both importing and exporting, trades cancel out any positive or negative aspect of exchange rate. Cheaper yen is bad for import but good for export, and higher yen is bad for export but good for import.
What's important is inflation rate, not exchange rate.
Inflation is crucial because it affects what you can buy at home in everyday life. Luckily Japan's inflation rate is low at this moment, comparing to other developed nations.
Inflation Rates:
Japan: 0.9%
UK: 6.2%
Germany: 7.3%
USA: 7.9%
Spain: 9.8%
Argentina: 52.3%
While people in many other nations are losing buying power of their currencies everyday, people in Japan is enjoying stability of their currency.
Japan is a better place to be in today.
socrateos
Come down, guys. It's not a big deal.
Here is a short history of Japanese Exchange Rate
1971: $1 = 357 Yen
1982: $1 = 273 Yen
1990: $1 = 157 Yen
1998: $1= 145 Yen
2002: $1 = 133 Yen
2007: $1 = 123 Yen
2015: $1 = 125 Yen
2018: $1 = 113 Yen
2022: $1 = 125 Yen
Yrral
One dollar is a sense of security, especially when it your last one
Strangerland
Sure.
USA Covid deaths per million: 2,983.01
Japan covid deaths per million: 225.
Mic. Dropped. Hope it didn't hurt your ears.
kaimycahl
@Strangerland Please explain how the US has been a complete dealing with Covid while Japan has been "VERY SUCCESSFUL? The US is open to tourism more than half of the population in Japan was complaining about getting covid while a majority of the american population had already had shots while Japan was still trying to figure out the logics of getting them to the people. Please explain, the numbers in Japan has continued to rise in the US no one is walking around with Mask anymore. Where are you getting your information from a Stranger MOON?
No, that's clearly not it, as the US has been a complete and utter failure with dealing with Covid, while Japan was very successful.
Strangerland
No, that's clearly not it, as the US has been a complete and utter failure with dealing with Covid, while Japan was very successful.
Skeptical
An even more interesting dynamic to watch in real time is the newly-released Chinese inflation data. China’s producer inflation surged 8.3% in March from a year ago, above expectations for a 7.9% increase, while the country’s consumer prices rose 1.5% YOY, higher than the 1.2% forecast.
Added to the fact that Chinese banks pumped an extraordinary CNY 3.13 trillion in new yuan loans in March of 2022, well above CNY 1.23 trillion in February and market forecasts of CNY 2.675 trillion and CNY 2.73 billion in the same month last year.
Strong inflation numbers, combined with their Covid lockdowns, adds considerable uncertainty to their outlook for growth over the rest of the CY, highlighting even more intervention by the PBoC over monetary policy. Which, in turn, is watched carefully by the rest of the world.
Dominos.
wtfjapan
Dollar is not rising. Yen IS sinking.
actually $ is rising compared to the Yen GBP Euro
Jtsnose
One reason for the stronger dollar may be US dealing with the Covid-19 pandemic, more successfully reducing the numbers of newly infected . . . . ?
antifun
This is Kuroda and Kishida admitting the low productivity in Japan and scaling the worker compensation accordingly. But, ultimately, it's not the fault of the workers, rather the zombie corporations that they are pouring billions to keep alive. It's the classic neoliberal playbook where the profits are privatized and losses are socialized.
TARA TAN KITAOKA
The end of Japanese yen.
JeffLee
Not since 2015, eh? Was everyone in "Japan is doomed" mood back then?
Actually, it is. DXY has been on a upward trend ever since the Fed indicated tighter monetary policy. The yen is low because of that and because the Boj favors a weaker yen to help Japanese exports.
takeda.shingen.1991@gmail.com
Right, well most of the country isn't need paid from assets valued in dollars.
Ahhh, wouldn't that be great for exports? Literally no one in the country would be able to afford anything.
But hey, most of your money comes in dollars, right?
Chibakun
1GBP = 200Y would be super nice for me
Johansawada
foreign tourist generates about $46billion USD to the economy (in 2019) while total exports is like $4 trillion USD... so yeah you are right foreign tourism is very small in the grand scheme of things... but still, $46b USD is alot of money and can generate a lot of jobs... definitely prefer Opening up for foreign tourism...
Johansawada
Some of my wife's friends (also a house wife) have been all gung-ho on carry trades and have their bets on dollar carry (borrow JPY and invest in US bonds)...
OssanAmerica
Tourism comprises a miniscule percentage of foreign income for Japan. You'd think it's very big because every restaurant, hotel, store is crying about no foreign tourists. But the export of goods far exceeds this source, and a weaker JYen will work to increase exports.
gakinotsukai
that will be economically compensated by increase of tourism ... wait ...
shogun36
So, many Americans (more importantly, their USD) want to travel.
For some reason a lot of them want to visit Japan. They want to spend their money and spend and spend.
Japan needs their money in the economy, and the tourism. Badly…..
BUT
Japan refuses to allow tourists in. They are so kind as to not allow tourists to catch Covid in japan (because after all, Japan is currently number 2 in the world in new Covid cases.) So considerate japan……….
SO, here we are…….lose-lose. No money in, and none in the near future. Yet the solution is right there. Good job Japan. As usual.
El Rata
I don't care, most of my income comes from assets valued in USD, I'm honestly hoping for a 200 Yen dollar, good for exports and once the government decides to stop the circus and open the country, you'll have all these American Japanophiles spending their ドル in the land of the rising sun. Win -win for most.
Alan Harrison
At first I thought that this would be a great thing for Japan. More tourist money, more inward investment. But unfortunately, tourists are currently barred, thanks to the MOJ, Japan seems a dangerous place to invest.
Japan will have to suck it up like everybody else.
rocketpig
Japan should just use the dollar instead. It will speed up integration with the mainland. Super plus sign
justasking
Dollar is not rising. Yen IS sinking.
Rodney
Does that mean the record money we paid for American bases, their families and weapons suddenly became even more expensive?
8T
Fantastic! My dollar bill just grew into a dollar tree!!
umbrella
I guess very few foreigners here keep any funds in the collapsing yen, other than everyday needs. The yen is on the way to 150 to the dollar and unless you don't like money, keeping funds in yen is just insane.
darknuts
With inflation hitting the dollar hard, I thought the opposite would happen. I get paid in dollars so this works out well.
nonu6976
well, that sucks - I have quite of bit of yen in the bank and no wish to spend it here - should've sent it back home 6 month ago. Oh well.
Wakarimasen
Should be yen falls to lowest level against the dollar.
Switch on the nukes.
smithinjapan
Well done, Kuroda! Dream came true. And for Abe, too. Now the rest of us can look forward to exponentially higher imports, and local prices sky-rocketing because of imported raw materials and ingredients. Oh, but Japan Inc. can rake in the profits on exports after.