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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 1️⃣ currencies. This tends to make Japanese goods and services cheaper for foreign buyers, while imports become more expensive for Japan.

Reasons 1️⃣ Behind a Weak Yen

The value of the yen is influenced by several elements, such as interest rates, inflation, and economic 1️⃣ growth. At present, the yen is weak due to the Bank of Japan maintaining a loose monetary policy, unlike most 1️⃣ main economies that are tightening theirs. This gap in interest rates has led to the yen's devaluation.

Effects of a Weak 1️⃣ Yen