Abe’s Yen Exporting Deflation Risks Davos Tension: Currencies
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Shinzo Abe’s debased yen is leaving other nations to pay the price for faster Japanese inflation.
As Japan’s prime minister addresses the global financial elite today in Davos, Switzerland, the yen is within 3 percent of a five-year low against both the euro and dollar, with analysts forecasting further declines. Its drop is one of the reasons why inflation in the euro area and the U.S. is undershooting central-bank targets, even as their recoveries gather pace, according to Barclays Plc and Societe Generale SA.