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What is a Weak Yen?

A weak yen refers to the decreased value of the Japanese yen in comparison with other 🔑 currencies. This tends to make Japanese goods and services cheaper for foreign buyers, while imports become more expensive for Japan.

Reasons 🔑 Behind a Weak Yen

The value of the yen is influenced by several elements, such as interest rates, inflation, and economic 🔑 growth. At present, the yen is weak due to the Bank of Japan maintaining a loose monetary policy, unlike most 🔑 main economies that are tightening theirs. This gap in interest rates has led to the yen's devaluation.

Effects of a Weak 🔑 Yen