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Yen tumbles to lower 144 range against U.S. dollar

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Cheap enough to start producing textiles for export again

8 ( +26 / -18 )

Thanks, Abe.

Hopefully the BOJ can look at changing course once Abe's crony Kuroda stands down in April next year.

3 ( +19 / -16 )

Darn, should have kept my bank in the US and held on to my credit cards.

8 ( +18 / -10 )

A friend of mine recently went from Tokyo to Vancouver and then to Hawaii and then back home to Japan on a business trip.

She could believe how expensive everything was overseas and how cheap everything had become in Japan.

I doubt we will ever see Japanese tourists abroad for at least another 5 years unless they have their fingers in the government pie.

11 ( +24 / -13 )

Kuroda is ready to do anything to boast that he reached his 2% inflation target including the destruction of his country currency. At 77, he does not care about the long term terrible consequences of his policy.

But Kuroda rest assure that Japanese people will never consider you as a hero. The inflation you created is imported inflation that reduces people purchasing power. Not the good inflation resulting from salaries increase.

10 ( +20 / -10 )

We need someone a lot younger and fresher in charge than fossilised Shunichi Suzuki

-2 ( +14 / -16 )

The yen continued to fall despite Japanese government officials signaling the country may intervene if the yen continues its rapid depreciation.

Japanese officials cannot intervene. Why not? Ok so let’s say they had some dollars to sell, and buy yen to support its value. Ok.

And then what happens when the Japanese officials have no more US dollars to sell for yen? Free-fall ensues.

So they won’t do anything.

The thing that might bring some temporary reprieve is a change in policy by the BOJ.

But if they stop buying the government’s debt, that pushes up the governments borrowing costs, and with debt of more than a quadrillion of debt, higher interest rates would be bad news for public finances. And harder for politicians to spend money they don’t have to get themselves re-elected.

But things may get desperate, and such a BOJ policy change may be attempted anyway.

If so, temporarily things might look better for a brief time, but unfortunately it’s going to be bad news in the end.

Things are not looking good.

-5 ( +7 / -12 )

I earn in USD.

Let the good times roll !

-1 ( +12 / -13 )

Those retired from the US military and living here are cashing it in on their pensions plus social security.

14 ( +16 / -2 )

Everybody I know holds all their money in US dollars and swiss francs. I would image nearly all foreigners in Japan do.

The poisoned yen is going to continue plummeting in value with no end in sight. The j government simply does not care about the effect on the J people. They know the J people will always vote LDP regardless.

-13 ( +9 / -22 )

Workers will soon demand their salaries/wages are paid in Dollars. Nobody wants the poisoned yen!

-12 ( +8 / -20 )

Those lucky enough to be using $US to fund their forays into the J stock market are poised to make a killing when the pendulum swings the other way and their yen investments become suddenly a whole lot more valuable.

To stymie these carpetbaggers, the J Government could do worse than signal a shot across the bows interest hike of at least one per cent. That, and open the country once more to foreign tourism.

2 ( +5 / -3 )

Obviously inflation will not boost domestic wage

Really don’t know what the deliberate depreciation of Yen can acheive

4 ( +5 / -1 )

Say hello to the demographic cliff. No stopping this trend.

2 ( +5 / -3 )

My American Bank is now full of... Bank!

1 ( +5 / -4 )

Remember how JT readers were like when Yen was very strong 10 years ago ?

They were just like now when Yen is very weak.

1 ( +6 / -5 )

Time to charge USA for their bases and us paying for their families here.

2 ( +7 / -5 )

poised to make a killing when the pendulum swings the other way and their yen investments become suddenly a whole lot more valuable.

The pendulum is still getting into the swing of the other direction. I am not sure the yen will even viably exist when things start to swing back in the other direction, which is not on the same timeframe as my outlook.

the J Government could do worse than signal a shot across the bows interest hike of at least one per cent.

The government is in charge of currency interventions, but not in charge of monetary policy, and hiking interest rates would further ruin public finances. What is 1% of a quadrillion yen of debt? Higher taxes to cover that?

That would also smash the value of the massive JGB holdings of the BOJ. Who wants to hold a currency backed by an insolvent central bank.

1 ( +1 / -0 )

Sell your YEN until you still can as I told you since long time ago.

I can hear voices that it is good for export, but who is going to work in Japan?

Society is ageing, birthday is at lowest ever, foreigners doesn't want to come to work in Japan anymore due to collapsing economy, factories are gone mostly move to China and Vietnam lont time ago.

-5 ( +8 / -13 )

It was like this in 1998. After that we saw some ridiculous times like USD1.00 = 70-80 JYen. So what we are seeing now will definitely swing back at some point in the future. If you have USD, good time to buy JYen and hold.

All the end of Japan comments expose a lack of experience.

-5 ( +4 / -9 )

Given the value of the yen, it would make sense to revise the prostitution laws. Japan would be a cheaper sex tourism destination than Thailand and the Philippines right now.

0 ( +12 / -12 )

So what we are seeing now will definitely swing back at some point in the future.

With all due respect, Japan is the most rapidly aging society in the world with hundreds of thousands retiring every year and not being replaced. Secondly, Japan moved manufacturing out of Japan to local markets and you cannot just build a factory in a week to take advantage of the yen. The government and the industry have forsaken the people.

2 ( +7 / -5 )

The pendulum is still getting into the swing of the other direction. I am not sure the yen will even viably exist when things start to swing back in the other direction, which is not on the same timeframe as my outlook.

I wouldn’t be too hasty in writing the country off. Japan enjoys a number of advantages that together confer tremendous cost advantage. The yen was seriously undervalued BEFORE this. The combination of hefty trade surpluses, low inflation vis a vis its major trading partners, a non level economic playing field that is designed to favor the home team, lots of leeway on raising interest rates, a potentially huge cash windfall to come once international tourists are allowed back in.

…….hiking interest rates would further ruin public finances. What is 1% of a quadrillion yen of debt? Higher taxes to cover that? That would also smash the value of the massive JGB holdings of the BOJ. Who wants to hold a currency backed by an insolvent central bank.

You could just as easily argue that a sky high US dollar, while good for robber baron hedge fund types salivating at the prospect of acquiring quality Japanese corporate assets at bargain prices, and well heeled tourists with more dollars than sense, is less so for American industries struggling to stay globally competitive, and a US Government struggling with unsustainable multi trillion dollar deficits requiring huge debt servicing costs payable to foreigners (unlike Japan’s borrowings), yawning trade deficits with most of its trading partners, and systemic failure on multiple levels. Things are not always as they seem.

-3 ( +0 / -3 )

She could believe how expensive everything was overseas and how cheap everything had become in Japan

I felt exactly the opposite when I came to Japan 20yrs ago. now when I do got home Im blown away how expensive everything is in my home country, especially rent mortgages.

the building I bought in Japan 5yrs ago and the mortgage, , Id could never dream of buying that in my home country unless I was on making at least 6 figures plus a year , similar home would cost me almost 3 times as much.

Japan isnt doing to bad with inflation compared to most other countries

2 ( +3 / -1 )

144.99 just a little earlier.

3 ( +3 / -0 )

Hyperinflation next

0 ( +2 / -2 )

Please get to 200!!!!

-5 ( +2 / -7 )

Bad time for the foreigners working in Japan and getting paid in yen!

-1 ( +2 / -3 )

Time for Japan to cash out and sell the $1.212 trillion in US treasuries being held.

1 ( +2 / -1 )

Time for Japan to cash out and sell the $1.212 trillion in US treasuries being held.

What's stopping them liquidating all that?

2 ( +2 / -0 )

All the end of Japan comments expose a lack of experience.

Look Japan is not going to end.

But it is facing a bleak economic outlook.

Its ok in the long run.

But if we are thinking about lack of experience, consider that the current currency of Japan, the yen, did not exist a long time ago. There was a transition from old to new. And there was turmoil with that transition.

Japan’s recent government accumulated too much debt. And where in the experience of history did that end well, in the long run?

1 ( +3 / -2 )

@fxgai

And then what happens when the Japanese officials have no more US dollars to sell for yen? 

The Japanese are the world's biggest foreign holders of US treasuries, with the govt owning around a trillion dollars worth, so your scenario is pie in the sky.

But (Japan) is facing a bleak economic outlook.

With an inflation rate of 2.6% compared to 8.5% in the US? And with US real rates in the negative, while Japan's are positive? Well, if you say so....

Japan’s recent government accumulated too much debt. 

Define "too much." Half of it sits in the Bank of a Japan, a public sector institution.

0 ( +2 / -2 )

My in-laws aren't complaining about inflation. So I'm not sure Japanese are suffering that much, they just went be holidaying in the US as much.

1 ( +3 / -2 )

Ignorance is bless.

The Japanese will stay happy and positive.

I wish I could have that mental strength.

-2 ( +2 / -4 )

It's about time its real value is exposed.

1 ( +2 / -1 )

¥360 - $1.00 when I first came to Japan in the early 70s.

¥88 - $1.00 in the 90's

And yet here we are still living our lives. All this "the sky is failing" rhetoric does nothing but cause anxiety and depression amongst those that aren't able to think for themselves. Lighten up, people. For those that can, try putting away some money in dollar/gold based investments. Find a good, well known investment firm and assess your financial risk tolerance conservatively. Then go on about your lives.

-2 ( +2 / -4 )

Hyperinflation is inevitable once the crisis in Taiwan erupts.

-2 ( +1 / -3 )

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