Yen Fall Debilitating To Japan

The yen's recent weakening may not be as rapid as last year when it lost around 20% of its value relative to the US dollar, but the prospect of it staying longer at current levels is already a cause for alarm for Japan Inc. and consumers, Kyodo News reported.

Photo Insert: The yen is in the 143 zone to the US dollar, far from around 130 that major Japanese firms expect the currency pair to average in the current business year to next March.

The yen is in the 143 zone to the US dollar, far from around 130 that major Japanese firms expect the currency pair to average in the current business year to next March.

The euro has also hit a 15-year high versus the yen near 157. The yen's recent weakness is largely due to the divergence of monetary policies between Japan and its peers in the United States and Europe, Mainichi Japan also reported.

Bank of Japan Governor Kazuo Ueda has been taking a neutral stance on the yen's fall of late, calling it "positive for some sectors but negative for others."

But consumers are feeling the lagging effects of the yen's precipitous fall since last year, as companies continue to pass on higher import costs to consumers, and Ueda has acknowledged that rising prices are "big burdens" on households.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic