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New York Forex Market Sees Continued Yen Weakness - USD/JPY Hits 156.06-16
- Writing language: Korean
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Base country: Japan
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- Economy
0000-00-00 00:00:00
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On May 5th, in the New York foreign exchange market, the Japanese yen weakened by 1.20 yen against the previous trading day, with the dollar/yen exchange rate reaching 156.06-16 yen per dollar.
Economic experts in Japan are analyzing this yen depreciation as a result of several factors working in combination.
First, amid the continued high possibility of interest rate hikes in the United States, expectations for further interest rate increases by the Federal Reserve are growing, leading to a rise in the value of the dollar. In particular, recent positive US economic indicators have further increased pressure on the Fed to raise interest rates.
Furthermore, the Bank of Japan's continued accommodative monetary policy stance is also fueling the yen's weakness. Despite persistent upward pressure on prices, the Bank of Japan is maintaining its current interest rate level and adhering to an accommodative monetary policy. This widens the interest rate differential between Japan and the United States, contributing to the yen's depreciation.
In addition, the recent expansionary fiscal policy of the Japanese government is also impacting the yen's depreciation. The Japanese government is expanding fiscal spending to stimulate economic growth, which can lead to a decline in the value of the yen.
Experts predict that the yen's depreciation is likely to continue. This is because the pressure for interest rate hikes in the United States persists, and the Bank of Japan's accommodative monetary policy stance and the Japanese government's expansionary fiscal policy are likely to continue to fuel the yen's weakness.
The yen's depreciation can have positive short-term impacts on the Japanese economy, such as strengthening export competitiveness and increasing tourist arrivals. However, it's crucial to be aware that in the long term, it can lead to negative consequences, such as intensifying inflationary pressures and reducing the purchasing power of citizens.
