Japan Yen Hits 156 to Dollar (34-Year Low)
Kanako Mita and Michiyo Tanabe
Modern Tokyo Times
The yen fell to 156 against the dollar. Hence, a 34-year low was reached against the American dollar in Japan. This signals continuing weakness within the Japanese economy.
Speculation emerged that the Bank of Japan (BOJ) would reduce its bond purchases. However, this didn’t materialize. On the contrary, the BOJ was dovish.
Reuters reports, “The yen hit its weakest level in three decades against the U.S. dollar after the Bank of Japan left interest rates on hold on Friday, leaving markets on edge about possible intervention, especially if hot U.S. inflation data pushes up the dollar.”
The yen rate was 110 to the dollar when Prime Minister Fumio Kishda took office in late 2021.
Lee Jay Walker (Modern Tokyo Times analyst) says, “Under his leadership, the people of Japan are getting poorer – while the rich (Japanese, foreign nationals, and mega-corporations) are enjoying boom time via the Nikkei stock market.”
Real wages have declined for 23 months. At the same time, the Nikkei stock market made the rich even richer inside and outside Japan.
Lee Jay Walker continues, “The poorest in society are suffering. This concerns part-time workers, the working poor, people on temporary contracts, women, and the elderly workforce in poorly paid work related to age discrimination.”
Shunichi Suzuki (Japanese Finance Minister) recently said he is “watching the market moves with a high sense of urgency.”
Confidence in the Kishida administration is low.
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