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Japanese Yen Continues to Weaken in New York Foreign Exchange Market - Dollar/Yen Records 156.06-16 Yen
- Writing language: Korean
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Base country: Japan
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Summarized by durumis AI
- The yen weakened against the dollar on the New York foreign exchange market on the 5th, due to a combination of factors such as the possibility of US interest rate hikes, the Bank of Japan's accommodative monetary policy, and Japan's government's expansionary fiscal spending policy.
- Experts predict that if these factors persist, the yen's weakness is likely to continue, while acknowledging that the yen's weakness could have positive short-term effects such as strengthening export competitiveness and increasing tourist arrivals. However, they also analyze that in the long term, it could have negative effects such as intensifying inflation pressure and a decline in consumer purchasing power.
- In particular, expectations of US interest rate hikes and the Bank of Japan's accommodative monetary policy stance are acting as key factors driving the yen's weakness.
The yen weakened by 1.20 yen against the dollar in the New York foreign exchange market on the 5th, with the dollar/yen exchange rate recording 156.06-16 yen per dollar.
Economic experts in Japan are analyzing this yen weakening as a result of a combination of factors.
First, the possibility of a US interest rate hike is still high, and the expectation of further rate hikes by the Federal Reserve is growing, boosting the value of the dollar. In particular, recent strong US economic indicators are further increasing pressure on the Fed to raise rates.
Furthermore, the Bank of Japan's continued accommodative monetary policy stance is also fueling yen weakness. Despite persistent upward pressure on prices, the Bank of Japan is maintaining its current interest rate level and adhering to its accommodative monetary policy. This widens the interest rate differential between Japan and the US, acting as a factor driving yen weakness.
In addition, recent expansionary fiscal spending policies by the Japanese government are also impacting the yen's weakness. The Japanese government is expanding fiscal spending to stimulate economic growth, which could lead to a decline in the value of the yen.
Experts predict that the yen is likely to continue to weaken going forward. The continued pressure on the US to raise interest rates, coupled with the Bank of Japan's accommodative monetary policy stance and the Japanese government's expansionary fiscal spending policies, are likely to fuel yen weakness.
Yen weakness could have a positive impact on the Japanese economy in the short term, such as strengthening export competitiveness and increasing tourist arrivals. However, in the long term, it is important to note that it could have negative impacts, such as intensifying price pressures and reducing consumer purchasing power.
