1000 yen bills and 10,000 yen bills spread out on a table.
Chimauchem Nwosu Amid the yen’s fall to a 152-to-one-dollar low, driven by Japan’s continued loose monetary policy and contrasting US rate hikes, the government is acting to ease the resultant household financial burden, particularly for importers, while exporters gain.On Tuesday, Japan’s Finance Minister Shunichi Suzuki affirmed the government’s readiness to intervene in currency fluctuations, reiterating his stance on the negative impact of sharp swings.Suzuki commented on how the devalued yen affects families, especially with the increased burden of importing fuel and food, leading to elevated living expenses.The Japanese yen has weakened to around 152 against the dollar, its lowest rate in a year. While this depreciation aids exporters and firms with international business by increasing their profits, it increases import bills for other companies and consumers.”What is important is to maximize positive effects from the weak yen while mitigating negatives,” Suzuki disclosed to media outlets.Suzuki reported that the government is already taking action to mitigate household financial difficulties with an economic proposal for the fiscal year ending March 2024. However, he did not disclose any further plans, such as the possibility of Japan intervening in the currency market.WorldJapanese Yen Sets New Record Low Against US Dollar17 October 2022, 06:35 GMTJapan’s currency has persistently sold off this year, burdened by the Bank of Japan’s decision to sustain its lax monetary approach, even as other major economies have chosen to extend the period of higher interest rates.Speaking to Japanese legislators, Shinichi Uchida, the deputy governor of the Bank of Japan, highlighted that the market’s attention is primarily on the gap in interest rates, emphasizing the ongoing monetary tightening in the United States as a driving force behind recent changes in the forex market.Japan’s last intervention in the currency market involved selling dollars and purchasing yen in October 2022. The intervention records released last month show that the authorities have avoided any similar actions thereafter.