Currencies: the yen just keeps on tumbling

The Japanese yen is trading close to a 20-year low with the US dollar, with the Bank of Japan in no rush to raise interest rates.

Bank of Japan Governor Haruhiko Kuroda
Kuroda: still focusing on ending deflation
(Image credit: © Arnd Wiegmann/REUTERS/Alamy)

Japan has become “the land of the sinking currency”, says Russ Mould in Shares. The yen is trading close to a 20-year low at 130 to the US dollar, having fallen 16% over the past 12 months. The main cause is divergent monetary policy: while US policymakers rush to tame inflation running at more than 8%, inflation in Japan is still below target at only 1.2%.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.