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)||79.84||97.63||105.9||121.1||108.8|
5 years of economic forecasts for more than 30 economic indicators.
Japan Exchange Rate (aop) Chart
Source: Thomson Reuters
|Bond Yield||0.03||-3.33 %||Sep 21|
|Exchange Rate||112.5||0.22 %||Sep 21|
|Stock Market||20,347||0.18 %||Sep 21|
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September 8, 2017
The economy expanded at a weaker rate than previously reported in Q2, following a downward revision in domestic demand.
August 31, 2017
Industrial production fell 0.8% in July compared to the previous month in seasonally-adjusted terms, contrasting June’s 2.2% increase.
August 25, 2017
In July, the core consumer price index was flat from the previous month in seasonally-adjusted terms, matching the result in the previous five months.
August 23, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from July’s revised 52.1 (previously reported: 52.2) to 52.8 in August.
August 17, 2017
Nominal exports valued in yen increased 13.4% from the same month last year in July, following June’s 9.7% increase.