Yen slides to 24-year low against dollar

Expect it to be at 140 by August.

The increasingly polar policies have strengthened the greenback, and on Monday one dollar bought 135.19 yen.

Currently trading at 134.49 and bouncing more than I have seen for a while.

I guess it is to be expected after the Nikkei 225 Index sank 3%, while the Topix Index was down 2.2% on Monday, lowest levels in two weeks.

More food for thought: Japan’s benchmark 10-year bond yield rose to a six-year high of 0.255% today, exceeding the 0.25% upper limit of the Bank of Japan’s tolerated trading band. This following the BoJ announcement that it will conduct an additional, unscheduled outright purchases of Japanese government bonds on June 14. The central bank said it would offer to buy 500 B yen worth of notes with maturity of more than 5 and up to 10 years.

Markets may also have been spooked by today's release of the business survey index of large manufacturing firms in Japan (the percentage of firms that expect the business environment to improve from the previous quarter minus the percentage that expect it to worsen). It showed a decrease of 9.9% in the 2Q 2022, after posting a 7.6% decline the previous quarter.

Other big news today came from the U.K., with news that their economy shrank 0.3% MoM in April, following a 0.1% contraction in March and missing market expectations of a 0.1% expansion. GDP is now 0.9% above its pre-coronavirus level in February 2020.

Have a good day.

The Tokyo bank I work for have a standing forecast of 175 yen to the dollar by year’s end now. What a disaster but with the inept government here, anything is possible.

With these very anemic exchange rates, I would imagine the huge English teaching industry will be in deep trouble trying to attract teachers to come. Earnings in US dollars/pounds/euros are rapidly declining. But with a government which is welcoming the destruction of their currency, this is but a side effect.

My ghosh! My pay is shrinking like a…

My ghosh! Although in shrinking yen, but there are at least some very happy ones out there still with a pay. lol

So much for the English teachers salary ( or those so called foreign students who go for the purpose of working rather than studying )! The salary would be crap after the currency conversion! It would be wise to just let the money they earn there ( if they have any leftover after expenses each month ) sit in the bank in yen and convert it later when the rates become better. But this might take a few years! It’s also a good time to look at South Korea and Singapore for not only these English teachers but also foreign students as the salary ( and working conditions ) there is much much higher after the conversion rate!

Y175 to the dollar would double my salary

buying power

RecklessToday  05:08 pm JST

The increasingly polar policies have strengthened the greenback, and on Monday one dollar bought 135.19 yen.

My ghosh! My pay is shrinking like a flaccid phallus after the deed!

Just keep and hold your Yen until the exchange rate returns to a stronger Yen. It's only shrinking if you convert it right now.

The way people are panicking it makes me wonder if everyone is getting paid in JYen and paying all their expenses in USD. Crazy....

Jim: " It's also a good time to look at South Korea or Singapore for not only these English teachers or foreign students"......

South Korea is a 'Yes', Singapore is a massive 'No' - study their disgusting human rights laws and judicial punishment systems, and Avoid this country (and its neighbour Malaysia) totally.

If everyone boycotted these terrible places, they may just change enough eventually to rejoin the civilised world.

By the way, what’s the all time record low?

I’m guessing Kishi and the boys are trying for that.

As a retired US military member and SS beneficiary, about 1/3 of my annual income here is in dollars. I'll be pumping up my JN bank accounts over the next several months. Then, if the yen goes string again, I'll just reverse the flow. Watch and adjust.

....if the yen goes strong again....

Whhops

shogun36Today  06:19 pm JST "trying

By the way, what’s the all time record low?

I’m guessing Kishi and the boys are trying for that.

The exchange rate was USD 1.00 = JY 360 from 1949 until 1971 with some minor parity fluctuation.

Rest assured neither the J-govt nor their trading partners are "trying for that".

BTW, Kishi is the Defense Minister and that office has nothing to do with fiscal policy.

if everyone is getting paid in JYen and paying all their expenses in USD. Crazy....

this is kind of ouch for me!!! getting paid in JPY and living in AUD, although I have other AUD income streams that cover the majority of my expenses in Oz.

srsly thinking of selling off assets here and making the move back to Jpn!!!

One of the few good things about being poor is that none of this affects me. I literally have nothing to lose.

The BOJ wants his 2% inflation while the rest of the nation is on it's knees, backwards isn't it!?

First Raise wages and you will get you get your 2% and more on a silver plate, LOL

By the way, what’s the all time record low?

before the Plaza Accord was forced on Japan in the 80s , Japan artificially forced to appreciate their currency so American manufacturers could be more competitive

Yen was around 350~200

I don't think we'll see 200-250 @Larr. I don't think you could even back that comment up. And who, exactly would Japan be defaulting to? Itself? Mm. Food for thought.

The JPY is at a 24 years low against the USD in nominal term but in real term (adjusted by the differential of inflation) it is at a 50 years low. We will all finish our life in Japan!

I was working on one of the bases back in 1998 and this was great. Now, working out in Japan, this is killing me when I send money back home. I'll just have to hold the yen and ride this out.

as usual the average person will suffer with higher food and fuel costs and if you like imported stuff then get ready to pay even more again. Japan inc and the governments buddies will all benefit and wont pass on the gains to the workers.

Time to vote these clowns out for once.

This is what happens when you inept Keynesian dodos in charge of monetary and fiscal policy.

Larr FlintToday  08:49 pm JST

I have been warning you guys for 4 months now that YEN will go bananas.

As I said before targets are 135, 145-150 then 200-250 levels if Japan won't default by that time.

Sell your YEN until you still can!

We already can sell our yen. And we'll be able to for the foreseeable future.

200-250.....LOLOL

The yen is "low"?

Get back to me when the $US hits ¥250 like in the 80s.

One of the few good things about being poor is that none of this affects me. I literally have nothing to lose.

I like it!

LDP troll machines are in full power today. They harass critical voices abroad and in Japan as we speak. Abenomics totally destroyed Japan but LDP trolls see an alternative reality in every comment. Even now, there are already some trolls becoming pessimistic as the situations worsen.

The Yen will hit 150 when the US announces being in a recession officially in July. That's when the nightmare for Japan will begin. After October, China will invade Taiwan and blockade the straight of Taiwan, so expect the economic situation to worsen further for Japan.

I would imagine the huge English teaching industry will be in deep trouble trying to attract teachers to come.

Is it still a huge industry like it was 15-20 years ago? I haven't bumped into any English teachers for years. I assume many of these schools have moved online where they can hire non-native speakers from developing countries. It would be interesting to hear from any English teachers still out there.

Double whammy for people earning in Yen and supporting their families back to their home countries, i.e. the "trainees". Prices going up back home and the yen they earn here is on its historic lows. Not everybody can ride it out as families back home are waiting for their remittances.

Double whammy for people earning in Yen and supporting their families back to their home countries, i.e. the "trainees".

How many trainees are from the USA?

And is the yen equivalently low against the currencies where these trainees are from? That's not mentioned in the article.

Do you blame Putin and his special operation in the Ukraine, or do you blame America's President Biden for the inflation in the U.S.?

You do not have to use Yen,when you can get you money in dollars, American banks always have a supply of dollars,if they are shipped by plane to an American branch in Japan,bank place for the amount,they need,they are stacked in pallets,then it your responsibility to come and get

Everything imported into Japan has been rising and will rise even more. The BOJ is shoring up (trying to) the yen but when US Treasury Bills offer outstanding rates of return but JGBs don’t, then there is no guessing where large institutional investors will go to get a return.

What plans are there to help reduce the cost of utilities for the regulator household in Japan?Reopen aging nuclear power plants (risky) and import more coal (expensive)

Yes, there is not anything new coming out of Japan to alleviate higher prices as the politicians are feckless.

We can all expect to earn less and pay more…

Japan can print money faster than US, and win the game..