Exchange Rate in Japan
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
|Exchange Rate (vs USD, aop)||121.1||108.8||112.2||110.5||109.0|
5 years of economic forecasts for more than 30 economic indicators.
Japan Exchange Rate (aop) Chart
Source: Thomson Reuters
|Bond Yield||-0.02||-4.41 %||Dec 30|
|Exchange Rate||108.7||-0.35 %||Jan 01|
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November 30, 2021
Japan went to the polls to elect all 465 members of the powerful lower house of the National Diet at the end of October.
November 24, 2021
The Jibun Bank Composite Purchasing Managers’ Index (PMI)—which combines the PMIs of the services and manufacturing sectors—rose to 52.5 in November according to a flash reading, up from October’s final figure of 50.7.
November 19, 2021
Core consumer prices—which exclude fresh food—fell 0.20% over the previous month in October, contrasting September's 0.10% rise. Core consumer prices rose 0.2% in October, up slightly from September’s 0.1% increase.
November 17, 2021
Core machinery orders—which cover the private sector, exclude volatile orders and are a leading indicator for capital spending over the coming three-to-six-month period—were flat month-on-month in seasonally-adjusted terms in September, after falling 2.4% in August.
November 17, 2021
Yen-denominated merchandise exports rose 9.4% year-on-year in October, slowing from September’s 13.0% growth.