Yen sinks to 20-year low against dollar

I don’t understand why recession in US will further push yen to 150.

Would you explain?

On a side note, it's comical how half of the articles on this website now have closed comment sections. Who ever though freedom of speech exists in Japan must have been hitting the meth pipe too hard that day.

I don’t understand why recession in US will further push yen to 150.

Would you explain?

You do not understand because it is not correct . If anything a US recession should push the USD lower and the JPY higher.

Been here over 30 years and have seen that the dollar never fails to appreciate during an international crisis - it is the ultimate safe haven after gold; that everyone acts as if the sky is falling; and that the yen reverts to its historical trend - more recently around 110-115 - once the crisis has passed. Granted, this is a pretty big crisis, but so was the Asian Financial Crisis of the '90s, when the yen hit 145/dollar.

the yen reverts to its historical trend - more recently around 110-115 - once the crisis has passed.

I think decades of profligate spending by the inept Japanese government and defacto monetization of it (which is supposed to be illegal given last historical mistakes) is the crisis.

The nuts in central planning positions like Kuroda and Kishida are like the dopey head of that Kazu I ship that sank off Hokkaido some weeks back when the weather turned bad. They really should know better but they have thrown caution to the wind so far and are intent on continuing to roll the dice. (Today we have Kishida announcing his “new capitalism” (big government socialism) plans and the yen just drops another yen in response, it’s pathetic)

In years past the yen used to behave as a “safe-haven” in a crisis.

This time the yen looks like it is the crisis.

Turkey’s Erdogan is a complete clown for thinking high interests cause inflation, and the Lira has plunged as a result.

Japan’s decision makers are looking just about as stupid in their belief that trashing the yen will help Make Japan Great Again, and the results are starting to look similar.

Really wish I got my money out last year.

The only cure for Japan is to host another Olympics. :)

It would certainly help tourism, but that's still not allowed. Why does the J-Gov do everything backwards?

I also said months ago to buy Rubbles. Now over double.

Where can you buy some? Did you buy any?

The bellwether 10-year Japanese government bond was untraded during the day for the second straight session during regular trading hours.

Not sure what is bellwether about such an illiquid instrument as that.

Due to the various stresses at work, yes it is highly possible the yen could weaken further.

However, it is unlikely there will occur a total economic collapse...because there is a powerful country whose vested interets in Asia depends on a relatively (relative to what its economic situation actually ought to be in real terms) stable Japan...and the LDP more than anyone knows they have a tidy arrangement, and can count on continued support.

umbrellaToday  05:46 pm JST

I would be surprised if anyone, at least in the foreign community, keeps any of their money in the pathetic freefalling yen. At the Tokyo bank I work for, they are seeing the yen at 150 to 175 to the dollar by the end of the year. Economic collapse, long forecast and expected, is finally here.

I am getting forecasts of JY 145-150 by the end of 2022. However, "economic collapse" ain't gonna happen. The Yen has been way cheaper in the past and nothing collapsed.

Desperate to keep asset prices high for the wealthy few will run the yen and Japanese households into the ground

Well for crying out loud, you better start those reactors again. Japan always seems to wait until something comes to bit it in the back side.

1.it will cut down on the import of gas.

2 it will cut down on the CO2 emission.

Every time the yen sinks I convert a little of my foreign currency to splash out on good wagyu and premium sake-the foolish BOJ makes it all possible….

@larryflint. I also said months ago to buy Rubbles. Now over double.

Double rubble, must be due to all of them bombs

However, the imminent collapse of Japanese YEN, as well as Japan's default, is on the way.

Much weaker JPY and higher imported inflation likely but default will never happen because the debt is all denominated in JPY and nearly entirely held by domestic investors. BOJ can always print JPY to finance it.

This just in.

The U.S. recorded a trade deficit of 87. 1 Billion USD in April. Much more than the consensus of $-89.5B and the forecast of $-91B.

Also, US natural gas futures skyrocketed to 9.4470 USD/MMBtu, up 1.34% for the day, 16.01% for the week, 34.49% for the month, and 202.08% YoY.

Tracking rice? More high numbers. Today it cimbed to 17.2300 USD/cwt, up 2.59%, which makes it up 31.13% YoY.

Much to do today, so let us get to it.

The bellwether 10-year Japanese government bond was untraded during the day for the second straight session during regular trading hours.

Japan 10 Year Government Bond Yield increased to a six year high today of 0.252%.

On the stock market, the benchmark Nikkei briefly rose above the 28,000 mark for the first time in more than two months.

A soft yen and the unwavering commitment towards monetary easing? Investors couldn’t resist buying local equities, with BoJ Governor Haruhiko Kuroda saying Monday that a weak yen will benefit pandemic-hit service providers in regional areas as Japan is set to reopen its doors to foreign tourists Friday. BoJ left its key short-term interest rate unchanged at -0.1%,while guiding 10-year JGB yields to around 0% in April. It said that it would buy unlimited amounts of 10-year JGBs to defend an implicit 0.25% yield cap every market day. Contrast with the U.S., with the benchmark 10-year US yield breaking above 3% for the first time in a month.

Meanwhile, Japan’s index of coincident economic indicators released Monday was at 96.8 in April 2020, unchanged from a downward revised figure the previous month. The index is a range of data including factory output, employment, and retail sales, with the highest reading In 1985 at 107 and the lowest at 71.60 earlier this year.

Also in: The index of leading economic indicators, a gauge of the economy a few months ahead, with compiled data such as job offers and consumer sentiment, showed an increase to 102.9 in April, after a 100.8 the month earlier, according to preliminary data. Analysts attribute the rise to anticipation towards passage of a supplementary budget worth more than 10 trillion JPY to stimulate the economy further and mitigate the impact of rising prices.

Something to ponder: Japan’s real wages posted the largest drop in 4 months in April, as a surge in inflation eclipsed the rise in nominal wages – rising 1.7% in April 2022 – thus eating away at workers’ purchasing power.

Next door, consumer prices in South Korea rose 5.4% in May 2022 from a year ago, increasing at its fastest pace in nearly 14 years, keeping above the central bank’s 2% target for the 14th consecutive month. Bank of Korea Governor Rhee Chang-yong said recently that he could consider bigger interest rate increases, depending on data anticipated later this summer. The central bank has raised its base rate by 25 bps to 1.75% in May, the highest level since June 2019.

Also, gasoline futures were trading around $4.20 a gallon today, not far from the record peak of $4.33 earlier this week, brought on by increasing demand (EIA predicts U.S. gas consumption April to September to climb almost 1% this year) and tighter supplies (EIA data shows gasoline stocks fell by 0.711 million barrels). Reminder: futures prices do not reflect actual numbers at the pump.

Will drop to 150 and keep all domestic tourists at home. Imported canteloupes will cost USD 1 million. Plus ca change plus cest la meme chose

This dollar/yen trade has really ingratiated me with my J FiL. Last April, I convince him to send me US$100k at JPY108. I put it in a money market where it has earned about 1%, but with dollar appreciation he's up another 20%. We're headed to Tokyo next week with US$20k he couldn't be happier. I still can't convince him to invest in crypto, but we convinced my MiL to open a crypto account while we are there. 75 years old and still open-minded. Amazing!

The problem with the Yen, is that no matter how hard it tries, it just isn't international enough to be a serious player on the world market. I have been saying for nearly 40 years now, no matter how low the dollar goes from time to time, the dollar is always King. The rapid rise of the Japanese Yen against the Greenback in 1985 - 1986 was a false economy for Japan.

Deliberate devaluation of own currency is not helping Japan.

The policy has been running for a decade. The main issues of japan are the aging, reducing population, conservative immigration policies, inefficient government…….. Currency value and interest rates ranked at the bottom of the market list

With this speed, Yen can sink to 140 in a week……

If Powell and Biden are going to officially announce the US entering a recession by this July, Japan's Yen will hit 150 and beyond.

Praying for a ￥200 dollar.

Lower... lower... and even lower it goes! Go yen!!!

@larryflint. I also said months ago to buy Rubbles. Now over double.

I would be surprised if anyone, at least in the foreign community, keeps any of their money in the pathetic freefalling yen. At the Tokyo bank I work for, they are seeing the yen at 150 to 175 to the dollar by the end of the year. Economic collapse, long forecast and expected, is finally here.