EconomyWhat is driving the weak yen? Interest-rate gap with major economies seen as the biggest factor

Japanese policymakers are growing more wary that the yen’s downward trend has continued even after intervention. A weaker yen can push up import prices and potentially increase the burden on households. The currency’s weakness is presented as a concern not only for Japan but also for the United States. The large interest-rate gap between Japan and other major economies, including Japan’s ultra-low rates, is identified as the main driver. Some voices also fear declining confidence in Japanese assets.

Japanese yenexchange ratesinterest-rate gapJapan economy

TToyo Keizai★★★☆☆2026-08-04 18:52Original