Jia Wong / Weak Yen Raises Economic Concerns for Japan > 공지사항

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Japan's currency keeps going down even though the country has a huge current account surplus and has even raised interest rates. It was the lowest level for Japan's currency in about 40 years, around ·162.8 to one U.S. dollar, at the end of June. Analysts say it is because of major structural factors in the long term, like continuous capital outflows, overseas investment by Japanese companies, and low domestic interest rates, which actually prompt investors to borrow yen in order to buy higher-yielding assets abroad. Despite the fact that the Bank of Japan has hiked interest rates and also gone into the forex market to intervene, the yen has only strengthened slightly due to these actions. Analysts have pointed out that if the yen stays weak over a long period of time, it might not only raise the cost of imports, but also weigh down Japan's economy further, and could even lead to trade disputes with the US, given the increasing worries about exchange rate policies. (Atlantic Council, July 7, 2026).

Article: https://www.atlanticcouncil.org/blogs/econographics/a-weak-yen-spells-trouble-for-japan-at-home-and-abroad/