Exchange Rate in Japan

Japan Exchange Rate (aop) | Economic News & Forecasts

Japan - Exchange Rate (average of period)

Trump’s victory and Fed’s hike prompt sharp depreciation of yen

The Japanese yen (JPY) has been depreciating sharply against the U.S. dollar since Donald Trump’s victory in the 8 November presidential election and, in particular, following the United States Federal Reserve’s decision to raise its benchmark interest rate at the 13–14 December meeting. On 15 December, the JPY marked the weakest reading since February this year; it traded at JPY 118.2 per USD. This was 8.2% weaker than the level observed on the same day in November. That said, on an annual basis, the Japanese yen still gained 2.9% against the greenback.

The sharp weakening of the yen mostly reflects expectations that Trump’s policies will boost growth in the world’s largest economy via stronger fiscal stimulus and that the Federal Reserve will have to hike rates, thereby widening U.S.–Japanese interest rate differentials. This situation contrasts with the dynamics observed earlier this year, where rising risk aversion due to an uncertain global outlook had led the yen to strengthen to a nearly three-year high.

If sustained, the depreciation of the yen could cause a rebound in exports, translating into an improvement in businesses’ earnings, higher inflation, and stronger investment and manufacturing activity. Nevertheless, Trump’s unclear policy plans will cast a long shadow on the yen’s performance in the coming months.


FocusEconomics Consensus Forecast panelists expect the yen to trade at 117.7 per USD by the end of 2017. For 2018, the panel projects that the yen will weaken to 119.4 per USD.

Japan - Exchange Rate (aop) Data

2011  2012  2013  2014  2015  
Exchange Rate (vs USD, aop)79.70  79.84  97.63  105.9  121.1  

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Japan Exchange Rate (aop) Chart


Japan Exchange Rate
Note: Japanese Yen (JPY) per U.S. dollar.
Source: Thomson Reuters

Japan Facts

ValueChangeDate
Bond Yield0.054.26 %May 24
Exchange Rate111.5-0.25 %May 24
Stock Market19,7430.66 %May 24

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