Recently, on the morning of September 2, 2022, the yen depreciated to 140 yen/USD. The record for the weakest in 24 years since 1998 or equivalent to the baht will be at 100 yen/26.27 baht.
Whoever has plans to visit Japan, it is a good time to gradually exchange the yen because, after the end of the year, Japan is expected to relax more immigration measures to help the tourism sector recover from the strict COVID-19 protection measures.
However, is it time for the BOJ or the Bank of Japan to reconsider their interest rate freeze policy to help the government with the highest debt in the world, more than 200% of GDP?
The main reason the yen sank to its lowest in 24 years is the dollar’s continued appreciation. This is a result of the Fed’s desire to curb the inflation that is required to raise the policy rate quickly.
At a meeting in Jackson Hole, it took the Fed chairman about 8–9 minutes to make it clear that he would do everything to control inflation. This means that the Fed will need tight monetary policy. Or raise interest rates until inflation reduces to the target of 2%, which July’s money was at 8.5%YoY, still as high as four times the target set.
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