How a weak Japanese yen affects the U.S. economy

Mar 27, 2024
Japanese autos have not dropped in price and U.S. exports now become more expensive.
Until recently, Japan’s central bank has kept interest rates low to spur growth.
Kazuhiro Nogi/AFP via Getty Images

Why the U.S. isn’t concerned that Japan might act to prop up its currency

Sep 20, 2023
The U.S. isn’t usually thrilled when a country intervenes in its own currency. But boosting the yen is likely to help Japan’s economy, which could help the U.S. in turn.
If the yen jumps around too much, anyone that wants to trade with Japan might hold off.
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The Bank of Japan hints at end of ultra-low interest rates

Dec 21, 2022
Despite global and domestic inflation, Japan's central bank held interest rates near zero. But it's just hinted that this policy will change.
By letting interest rates go up, the Bank of Japan could make government bonds more attractive to investors.
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As economies worldwide struggle with inflation, Japan faces another problem: a weak yen

Sep 22, 2022
As many central banks raise interest rates, the Bank of Japan is keeping them low to prop up the economy. That leads to a depreciated currency.
The Bank of Japan headquarters in Tokyo. The BoJ has kept interest rates low to prop up the economy, but the side effects include a depreciating currency.
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Why the U.S. dollar is so strong right now

Aug 29, 2022
The dollar index hit a 20-year high in European trading, the result of the Fed's rate hikes and the relative strength of the U.S. economy.
The dollar is essentially at par with the euro — lower than it’s been since the European common currency was launched.
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Japanese shocked by rising prices after decades of economic stagnation

Jun 20, 2022
Japan had struggled to even reach the central bank inflation target of 2%.
Japanese consumers have come to expect stable prices, making it difficult for stores to consider increasing them.
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How does the strong dollar affect U.S. consumers?

Mar 11, 2015
The dollar remains strong against other currencies. What's the effect on consumers?

For public good, not for profit.

Sony back in the black for the first time in 5 years

May 9, 2013
Japanese entertainment and electronics giant Sony has managed to make money, not lose it for the first time in five years. The company reported a net profit of $948 million.

Japan stimulus has investors eyeing Europe

Apr 9, 2013
The value of the Japanese yen fell to its lowest level in four years after a huge monetary stimulus package was unveiled last week, and the effects of the stimulus are starting to be felt far away from Japan.

'Currency wars' on the agenda at the G20

Feb 15, 2013
The Group of 20 major world economies are meeting in Moscow today, and the biggest item on the agenda is global monetary policy with some countries complaining about a 'currency war.'