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Yen falls to fresh 24-year low against dollar

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29 Comments
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Yeah, close the border until it reaches 300 yen to a dollar!

-4 ( +8 / -12 )

Thanks to our BOJ

a free fall to 139.3 now

1 ( +6 / -5 )

Someone told me back in May expect 150 yen per 1 USD by the end of Aug. I don't know why Aug. bust it sure beginning to look like it.

2 ( +7 / -5 )

When will the useless Finance minister grandpa wake up from his nap and start doing something?

1 ( +8 / -7 )

Now you can afford that Toyota, if you can find one on the lot (USA)

-3 ( +1 / -4 )

Now you can afford that Toyota, if you can find one on the lot (USA)

Um, no. The price of the Toyota on the lot today is a function of supply and demand for a car already built shipped and delivered. As it’s price is denominated in USD, it will not have changed a lick. At least not because of changes in the yen rate.

0 ( +1 / -1 )

My my, everything is going backwards in Japan. No longer a safe haven currency.

-6 ( +8 / -14 )

Time to exchange some dollars for yen again.

I'm glad most of our assets and all of our income is in dollars.

OTOH, the tide will no doubt shift in the other direction at some point.

0 ( +4 / -4 )

BOJ will start to act at 140... so my banking buddies say. I'm not so sure.

-3 ( +3 / -6 )

If the Fed is tightening, this is only going to get worse.

Its mostly the interest rate differential, and the Japanese government is not going to do anything about that.

4 ( +7 / -3 )

For those who are ignorant, literally every currency is at the moment falling against the dollar at record speed. This is not just the BOJ fault. The problem is that the US is not able to tame their inflation and has to been hiking up interest rate constantly. Which in turn is hurting the whole world economy due to how depended we are on the dollar. We are basically being drag into the water while the US is sinking. You cannot blame the BOJ for this.

-7 ( +5 / -12 )

I don't think this inflation will last, and US rates will be expected to drop again soon. My guess is we'll be back at 120 by the end of the year.

-5 ( +1 / -6 )

The falling poison yen is like a comedy show. The Tokyo bank I work at forecasts the yen at 175 by year’s end but the way things are going, it will be earlier than that. The “government” here is so pathetic, they are just watching the currency being destroyed but are unwilling or unable to do anything about it. And of course the minions have dutifully obeyed their masters and voted ldp yet again.

The only good thing about the currency’s collapse is that I and most foreigners here keep all their funds in foreign currencies.

-5 ( +6 / -11 )

According to the attached report, the appropriate dollar-yen rate is 90.74 yen. Perhaps we should prepare for a policy shift by the BOJ in the near future. I have already converted two-thirds of my dollar deposits into yen.

https://www.bloomberg.com/news/articles/2022-06-24/yen-s-true-value-could-offer-support-once-boj-pivots-bofa-says

-1 ( +3 / -4 )

Enjoy the ride bcz. you are not going to see this again for a very very long time.

0 ( +1 / -1 )

Calm down kids. it is just 24 yrs low

-2 ( +2 / -4 )

Guys how many times I have to tell you

Sell you YEN until you still can!

It is only 24 yrs low, most of the government official saw it when it was 200-300 level and they definitely want to see it again!

-6 ( +4 / -10 )

I've lived here through as low as 140 and as high as 80...

0 ( +1 / -1 )

The dollar weighted against a basket of currencies

U.S. DOLLAR CURRENCY INDEX

https://www.tradingview.com/symbols/TVC-DXY/

The dollar has nudged parity against the Euro.

5 ( +5 / -0 )

I am buying as much land as I can in Japan!!!!

-2 ( +4 / -6 )

Ironically, despite the steep stock and bond market downturn, my Japanese retirement investment accounts are up double digits this year, as the underlying currency for 90% of my fund holdings is US dollars -- even though the funds are denominated in yen!

If you plan to stay in Japan forever and have been buying the Sp500 and other foreign-based assets, you're one of the very few people in the world right now doing very well indeed.

0 ( +3 / -3 )

Yeah, baby! Right in time for our family visit later this summer!

-5 ( +1 / -6 )

Japan has finally become a developing country.

-6 ( +2 / -8 )

If you plan to stay in Japan forever and have been buying the Sp500 and other foreign-based assets, you're one of the very few people in the world right now doing very well indeed.

That’s overzealous.

Buying overseas assets has long been a no brainer. Various investment books and forums recommend it, so many people investing at all must be doing this.

But the economy sucks right now with all the inflation mess that has been unleashed, so it’s not a great time with global stocks in a bear market, and authorities are going to mess up further as they are forced to relearn the lessons of history, as wishful thinking isn’t going to cut it.

0 ( +0 / -0 )

@fxgai

Buying overseas assets has long been a no brainer. 

Not for Japanese retail investors. The Nikkei 225 index funds usually top the popularity charts for equities. For most people here "overseas assets" means foreign currency, gold, crypto and even EM. I was specifically talking about SP500 funds, which aren't popular in Japan.

https://www.rakuten-sec.co.jp/web/special/domestic_etf_ranking/

The SP500 isn't even popular among posters on this forum, in case you haven't noticed, as it's long been dominated by the gold bugs and more recently the crypto gang. Whenever I mention my investment habits, my posts usually get a ton of downvotes.

But the economy sucks right now with all the inflation mess that has been unleashed, 

2.5% core inflation in Japan versus 6% in the US. Canada's benchmark rate just went up by a full percent. It's a bigger "mess" in most other places.

it’s not a great time with global stocks in a bear market

It depends what you plan to do with those stocks. If you sell any of your SP500 funds in Japan right now, you'll be getting hefty capital gains. It's a great time if you want to buy a car, property, or pay a kid's university tuition in Japan -- that is, if you had invested like me.

0 ( +0 / -0 )

That rakuten link is 10 years old data but I can see S&P 500 ETFs ranking in there, with even broader indexes ranking higher.

Maybe I have a bias to finding information that promotes overseas investments, but the 7 top ETF picks of Japan Morningstar’s Asakura-san are all overseas ETFs now:

https://diamond.jp/articles/-/303263

The SP500 isn't even popular among posters on this forum,

JT is a bit out there as an investment forum :)

in case you haven't noticed, as it's long been dominated by the gold bugs and more recently the crypto gang.

I think there are plenty of skeptical voices regards to crypto here. I think I have been calling it a tulip since I bought some crypto myself 5 or so years ago.

And, I do own some gold and other commodities so I might be a gold big in yourn eyes :)

Whenever I mention my investment habits, my posts usually get a ton of downvotes. 

Perhaps you didn’t give the impression you had intended; because I at least was surprised to learn here you claim to have 90% of yours in overseas assets, whereas the impression given was typically that of a die-hard Abenomics Japan bull.

-- that is, if you had invested like me.

That self-horn blowing might have something to do with the downvotes too!

2.5% core inflation in Japan versus 6% in the US.

Inflation is only one valve, there are others like currency rates, and the BOJ has a far more bloated balance sheet than foreign peers, and has even gone crazy loading up on volatile stocks.

It's a bigger "mess" in most other places.

That’s that die-hard japan bull impression I was talking about.

It depends what you plan to do with those stocks. If you sell any of your SP500 funds in Japan right now, you'll be getting hefty capital gains.

One does get to keep almost 80% of any capital gains whenever selling, but that was not really my point. This year the stock markets are saying that the economy is going to be off, and it hasn’t been a great time for those with investments.

The wonderful times of rising stock markets with all the government stimulus that we had in the prior couple of years was never going to last forever though, but in the longer term I think these periods of gross economic mismanagement by the central planners present prudent investors with opportunities to make good gains in the long term. (Of course, only to be loathed by some.)

0 ( +0 / -0 )

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