Japan On Alert As Yen Falls To Lowest Level vs U.S. Dollar

The Japanese government was on high alert Tuesday, June 7, 2022, as the yen fell to levels not seen in the previous 20 years against the US dollar, raising fears that the economy's embryonic recovery from the COVID pandemic could be short-lived, Mainichi Japan reported.

Photo Insert: The weaker yen has resulted in higher import costs, which has pushed up domestic prices at a time when Japanese workers' wages have been stagnant.

"We are paying close attention to developments in the foreign exchange market and their impact on the Japanese economy," Finance Minister Shunichi Suzuki told reporters.

At 11 a.m., the yen was trading around 132.60 per dollar, with predictions that the US Federal Reserve will continue to tighten monetary policy, increasing the interest rate differential between Japan and the US.

A weaker yen has resulted in higher import costs, which has pushed up domestic prices at a time when Japanese workers' wages have been stagnant.

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