Q&A: What Does A Persistently Weaker Japanese Yen Mean?
Country Risk / Japan / Fri 17 May, 2024
In 2022 when the Japanese yen started to weaken, we argued that it was not necessarily negative for the economy as it would help to boost exports, corporate profits, earnings from reserve assets held abroad as well as support equity prices. This view has largely played out, and with the exchange rate briefly falling to JPY160/USD in early May, in