Yen will continue to cheapen while this takes place. Imports and travel abroad will become even more expensive.
They can’t raise rates because they don’t want to repeat what Turkey did with their economy
My guess is that Kishida is betting on three things: 1) Massive return of foreign tourist from China/Korea, (sooner than we can imagine, perhaps just straight after the elections). 2) Increase of Japanese exports at a time freight costs are at a record high. The weak yen might compensate those freight costs. 3) Avoid a race to highest bond yields with other major economies.
I’m just waiting to pull the trigger on some large yen purchases. Hard to time the bottom.
Yen is skiing down the mountain fast. Let’s just hope Kishida’s bet on those sweet juicy tourists dollars will pay off in the end.
Might no happen if China is experiencing its first recession.
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Yen will continue to cheapen while this takes place. Imports and travel abroad will become even more expensive.
They can’t raise rates because they don’t want to repeat what Turkey did with their economy
My guess is that Kishida is betting on three things:
1) Massive return of foreign tourist from China/Korea, (sooner than we can imagine, perhaps just straight after the elections).
2) Increase of Japanese exports at a time freight costs are at a record high. The weak yen might compensate those freight costs.
3) Avoid a race to highest bond yields with other major economies.
I’m just waiting to pull the trigger on some large yen purchases. Hard to time the bottom.
Yen is skiing down the mountain fast. Let’s just hope Kishida’s bet on those sweet juicy tourists dollars will pay off in the end.
Might no happen if China is experiencing its first recession.