Japanese yen is mostly lower today, falling against many of its counterparts. While Japanese officials like the yen weak since it helps the economy, there are concerns that a continued policy of yen weakness could complicate matters with the United States.
It’s been an interesting few days in Japan. In recent days, different officials have made conflicting statements about yen currency policy. Yen weakness has been encouraged by policymakers in Japan for years as a way to boost the economy through exports. A weak currency means that Japan’s goods are inexpensive compared to other countries’ goods, and that helps exporters.
However, there are some downsides to a weak yen. Japan imports food and energy, and a weak yen means that small businesses and consumers bear the brunt. In the United States, there are increased concerns about the strength of the dollar and the impact on exports. So, while the Japanese wait for the policies of Prime Minister Shinzo Abe to get the economy going, there are growing tensions with the United States, one of Japan’s top allies.
At 10:59 GMT USD/JPY is higher, gaining to 124.8120 from the open at 124.3590. EUR/JPY is up to 140.0930 from the open at 139.7640. GBP/JPY is lower, falling to 191.0160 from the open at 191.0850.
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