However, while this downturn is worrying for the government, Japan still seems to wait for the US to come and solve this.
Japan’s top currency official Masato Kanda said he is in very close contact with his counterparts in the US on a daily basis about this issue and both sides agree that excessive currency moves are unwelcome.
Basically, they’re going to do nothing for the time being.
But is it actually the best for Japan?
Amid accelerating inflation, pressure to service huge government debt and a looming recession in US’s own economy, it remains to be seen whether the US is acting in Japan’s best interest.
It is worth noting that the US is in dire need of continued borrowing to somehow delay the impending economic chaos amid of countries worldwide reducing or completely halting their purchases of US Treasuries.
The yen’s value against the dollar on the spot market has fallen about 12% this year. For now it is the worst performance among the currency’s peers in the G10.