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Yen’s Historic Fall Signals Rewrite of Global Currency Playbook

  • Rates gap sparked decline that has roots in struggling economy
  • Japan appears powerless to stop currency from falling further
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WATCH: Rabobank’s Jane Foley examines the potential need for yen intervention by Japanese authorities.Source: Bloomberg
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The yen’s plunge to a 20-year low threatens to leave it significantly weaker for years to come, shaking up global money flows and undermining Japan’s efforts to get its fragile economy back on track.

The speed of the decline -- it’s slumped 11% against the dollar in seven weeks -- has caught policy makers off guard and exposed divisions between a central bank intent on stoking inflation and a government facing a backlash over rising prices.