Reported about 1 year ago
The Japanese yen exchange rate depreciated below 160 against the US dollar on July 6, 2024, becoming a significantly weak major currency, with forecasts indicating it may further decline to 170. While the depreciation boosted export-oriented industries like the automotive sector, it led to personal consumption shrinking as households faced economic pressure due to rising import prices. Experts warn that the prolonged yen depreciation reflects a possible decline in Japan's economic strength, with potential consequences such as reduced real wages and consumer spending, prompting discussions on productivity enhancement and regulatory reforms by the Japanese government.
Source: YAHOO