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Yen sinks to 34-year low past 160 per dollar

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Things are looking pretty bad for residents in Japan.

6 ( +18 / -12 )

I think the yen will ultimately bottom out at around 190 ¥ / $1. The tourist industry as well as exporters of Japanese goods will continue to reap the huge benefits until it bottoms out.

The widely held mantra that Yen is a "safe haven currency" has been debunked.

11 ( +26 / -15 )

My salary just lost 40% of its value in just 3 years time...

Prices have more than doubled on anything: food, utilities, living expenses, hospitality, flight tickets, etc, etc.

What other proof is needed that the Government is completely sold to corporations, who are making record profits, while the complete burden is on all working classes.

In other other country, there would have been massive demonstrations and protests against the central government to stop this madness.

Here? Not a peep, everybody is dead silent, including the press and media. Like all is well and exactly how it suppose to be.

The most passive and not carrying nation on the planet. By far.

-10 ( +25 / -35 )

The BoJ has been a global outlier in sticking to an ultra-loose policy while other central banks pushed rates up as they fought against surging inflation -

The BoJ has only its own policies to blame for the crashing yen, unlike other Asian financial crises.

The neo-liberal Abenomics had QE as one of its 'arrows' , and the arrows were aimed at enriching large asset holders and hobbling the middle class and labour.

https://reason.org/commentary/how-quantitative-easing-helps-rich/

Abenomics is an enduring curse on the Japanese public.

16 ( +30 / -14 )

Bad for the world actually.

For those of you are do not get it yet, the 'yen carry trade' which has been responsible for most of the worlds liquidity for the last 30 years is about to blow up. The yen carry trade is when investors (mostly foreign) borrow trillions of yen at very low rates, and then purchase US treasuries paying a higher rate. The spread (profit) is what they then use to buy equities, real estate, anything....

This has only been possible because Japan has been in deflation the last 30 years - now it has transitioned to inflation meaning the BOJ needs to raise rates or run the risk of inflation getting out of control. This means the spread between the borrow rate in Japan vs the buy rate in the US shrinks. This means you effectively take trillions of dollars out of the global economy. What do you think has been propping up the US stock market for the last 20 years? - yen!!!

We are headed for a global recession, if not worse.

-7 ( +11 / -18 )

This is why you always maintain assets in several currencies.

although I did finally decide to take some recent dollar profits in stocks and convert to yen cash for when the yen is back to 120 next year.

2 ( +14 / -12 )

Bad for the world actually.

Good assessment. So, where to put our quickly devaluing yen?

0 ( +4 / -4 )

Dollar Yen at this moment is 157.13¥/$

9 ( +14 / -5 )

Dollar Yen at this moment is 157.13¥/$

yep, BOJ has stepped in and is selling USD and buying yen - this is just a bandaid, and it will fail just like all the previous times.

9 ( +13 / -4 )

160 isn’t sustainable yet.

of course it would bounce off that and head back towards 155 pretty quickly.

Especially easy to manipulate on Japanese holiday period.

6 ( +16 / -10 )

Good assessment. So, where to put our quickly devaluing yen?

I don't have a lot of yen (just from salary basically) - all my cash is in other currencies, but if I did have a lot of spare yen, I'd be more buying BTC.

-6 ( +2 / -8 )

The US first Bank of the year has failed,and the Fed Chairman say more will follow

-5 ( +2 / -7 )

They do not have but 121 billion dollars,this is only a small amount, when bank have trillion in loans

-3 ( +1 / -4 )

That basic tasty bowl of Kitakata ramen in Fukushima is now the equivalent of $4.70 which is simply mind blowing.

2 ( +4 / -2 )

So, where to put our quickly devaluing yen?

Gold is one option. Up 26.5 % YTD in yen terms.

5 ( +6 / -1 )

Gold is one option. Up 26.5 % YTD in yen terms.

dirt is up YTD in yen terms.

1 ( +9 / -8 )

All of that stoicism that Japan was praised for after the 2011 quake and the apathy and inertia on display now as its currency crumbles are direct results of a population never learning critical thought.

The herd mentality is waiting for someone to do something,but nobody knows what to do or how to tAke responsibility.

-10 ( +11 / -21 )

This looks like a bubble/pile on to me.

Japan has lots of problems, but none of them are problems that started two weeks ago. The economy has not lost 6% of its strength in a fortnight. Some of yen selloff might be foreign investors exiting positions and repatriating their money on the big dip in the Nikkei. A month ago, the news was all on how wonderful the Nikkei was and how it was headed to 50,000. The Nikkei is a number, not the real economy.

7 ( +10 / -3 )

The place is doomed

-14 ( +10 / -24 )

I'm going to eat onigiri for lunch and dinner now.

-8 ( +6 / -14 )

Don't worry always so too much. Finally they somehow need you, as slaves, workers, consumers, customers and voters, all the roles they are incapable to play sufficiently themselves.

-15 ( +2 / -17 )

Fomc end of the week should set things straight. Not necessarily good for yen

-1 ( +0 / -1 )

As someone who earns in USD I suffer too. I mean should I sell my dollar now and live like a king or later and live like a god.

5 ( +6 / -1 )

I'm glad this doesn't affect me. I live and work in Japan, and earn yen. I have no plans for foreign travel.

-3 ( +7 / -10 )

The road outside Costco is still in a constant state of traffic jam, it's not the end of the world.

2 ( +3 / -1 )

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

-2 ( +6 / -8 )

The greenback bought 160.17 yen in morning trade -- its weakest since 1990 -- fanning speculation that Japanese authorities would step in to support their currency.

The Japanese authorities didn't do anything before when the Yen started to dip and now that it's full on tanking into the toilet, they're probably still not going to do anything.

-2 ( +3 / -5 )

I'm glad this doesn't affect me. I live and work in Japan, and earn yen.

Actually it affects you a hell of a lot, unless you grow 100% of your own food, don't drive a car, nor use any electricity purchased from a local utility.

ALL costs have risen across the board, and if you shop for any groceries in Japan, you are 100% affected as over 60 % and Japan is the No 1 importer of food in the world!

9 ( +11 / -2 )

This is some good news for all those exporters. Honda. Toyota. Suzuki. Yamaha, Sony, Kawasaki, et al when they repatriate those profits. Great for the tourism industry. Hotels, onsen, theme parks, restaurant, airlines. Great for all those investors who invested in the US market for the past 15 years. As we bring those dollars back home as we draw down. Instead of a measly 105yen from years ago I can get 160 yen for my very same dollar. So that’s a massive increase in our income. People complained when the yen was 105 yen to the dollar, and they complain when it’s 160 yen for the very same dollar. My lights are on, my bowl of ramen is the same, and the 100 yen sushi is still delicious.

-1 ( +3 / -4 )

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

Wrong! They know. They know because costs have risen so high that everyone's pocket book is hurting!

I suppose those in inaka land or have dementia dont know, but anyone who drives a car or buys food knows about it!

1 ( +6 / -5 )

Interesting how it works 34 low against the dollar but the GBP rates not as bad as even 2007.

Good time for UK tourists to come getting nearly 30 yen more to their pound from just a year ago.

1 ( +2 / -1 )

156 now.

-1 ( +1 / -2 )

Wrong! They know. They know because costs have risen so high that everyone's pocket book is hurting!

I suppose those in inaka land or have dementia dont know, but anyone who drives a car or buys food knows about it!

You are right.

They know about it big time, but just shrug their shoulders.

-2 ( +4 / -6 )

The neo-liberal Abenomics had QE as one of its 'arrows' ,

It wasn’t neoliberal.

Big government spending and money printing to finance it is not from the neoliberal playbook.

2 ( +3 / -1 )

Gold is one option.

Great option.

Which fiat currency has outperformed gold over your lifetime?

Look it up.

(Hint, probably none of them. Spot the trend?)

-4 ( +0 / -4 )

Yubaru

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

> Wrong! They know. They know because costs have risen so high that everyone's pocket book is hurting!

> I suppose those in inaka land or have dementia dont know, but anyone who drives a car or buys food knows about it!

The average Japanese may not be familiar with the dollar-yen exchange rate, but they are aware that import prices may increase over a period of time, rather than suddenly due to exchange rate fluctuations.

"Consumer Price Index CPI in Japan increased to 107.20 points in March from 106.90 points in February of 2024. Consumer Price Index CPI in Japan averaged 73.06 points from 1957 until 2024, reaching an all time high of 107.20 points in March of 2024 and a record low of 17.10 points in February of 1957. source: Statistics Bureau of Japan"

https://tradingeconomics.com/japan/consumer-price-index-cpi

You don't need to post insults. You always do.

For many living in Tokyo, living in Okinawa is like living in the Inaka.

5 ( +6 / -1 )

David BrentApr. 29  03:37 pm JST

I'm glad this doesn't affect me. I live and work in Japan, and earn yen. I have no plans for foreign travel.

Do you eat? Japan imports over 60 percent of its food. The lower value of the yen means imported food will cost more.

2 ( +4 / -2 )

Do you eat? Japan imports over 60 percent of its food. The lower value of the yen means imported food will cost more.

I don't eat imported food. Easy.

-3 ( +0 / -3 )

Imported food stuff to Japan (a small list)

Meat (Pork, beef, chicken), fisheries (salmon, octopus, tuna, squid, etc.), vegetables (pumpkins, broccoli, carrots, etc.), Grains (rice, wheat, barley, oatmeal, corn); Fruits (oranges, grapes, pineaple, kiwis, cherries, bananas, mangoes, apples), beans (peanuts, red beans, soy).

I am only mentioning, some those things thar are very common and you see on your everyday table, not including stuff like olive oil or trufflels, or snacks.

If you want to go eat only products made in Japan without imports, meat, eggs, milk and soy products (tofu, shoyu, miso) should be out of your diet, also bread.

Rice you can eat. And bread... if you are willing to pay a very hihg cost for a loaf of bread, sure

1 ( +2 / -1 )

Price increases because of the exchange rate will take several months before they reach the stores.

I make wholewheat bread with organic Japanese flour for less money than store bread. About ¥300/kg.

We have local grown organic vegetables and fruits.

0 ( +2 / -2 )

Gyomu store imported meat prices are less than the domestic ones.

1 ( +3 / -2 )

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

I asked, they knew.

I make wholewheat bread with organic Japanese flour for less money than store bread. About ¥300/kg.

You gotta do what you gotta do when there are no stores nearby as is the case in desolate parts of Japan.

-3 ( +1 / -4 )

gcFd1

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

I asked, they knew.

None of my Japanese friends do including my partner. But I check because of the dollar money I receive.

I make wholewheat bread with organic Japanese flour for less money than store bread. About ¥300/kg.

You gotta do what you gotta do when there are no stores nearby as is the case in desolate parts of Japan.

I live in a city with many food stores but none sell organic wholewheat bread.

2 ( +3 / -1 )

gcFd1

If you were to ask a Japanese person about the current exchange rate between the US dollar and the Japanese yen, chances are they wouldn't know.

> I asked, they knew.

At a party on Sunday with 10 people we discussed the exchange rate. None knew the current rate including another foreigner.

3 ( +4 / -1 )

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