Japan’s yen has seen a steep rate of depreciation, falling to its lowest point against the dollar since 2016. It has also lost ground against the euro and sterling.
This decline has come as the US is seeing increased rates of inflation and rising prices, which the Federal Reserve is attempting to temper by increasing interest rates. Japan, meanwhile, is seeing inflation stay at low levels, so the Bank of Japan (BOJ) has made no changes to interest rates. The bank’s governor, Haruhiko Kuroda, has said rates must remain at their current level to support economic recovery.
