The precipitous fall of the Japanese yen

The Yen recently below 160 to the dollar, its lowest value in more than 30 years

Photo collage of a tiny salaryman figurine standing atop a scattering of yen banknotes, photographed with shallow depth of field. Over the top, there is a line representing the falling value of yen, and in the background there's torn cardboard and graph paper.
The yen is volatile due to interest rate differences between the US and Japan
(Image credit: Illustration by Julia Wytrazek / Getty Images)

Japan's economy has not had a good 2024, to say the least. It entered a short recession in February and now is dealing with a crisis surrounding the nation's currency, the yen. The currency's exchange rate has been seeing a continuous slide, recently weakening to 160.86 against the U.S. dollar and 171.79 against the euro. This marks the yen's lowest value against the dollar since 1986, and its lowest value against the euro ever. 

This unprecedented low values had some wondering how other nations would react to the ongoing issues within Japan's economy — specifically whether or not foreign markets would intervene in an attempt to stop the slide. How did Japan's currency get here, and why are many industry experts blaming the United States? 

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Justin Klawans, The Week US

 Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.