Yen plunges after LDP ousts DPJ from power

Business Dec. 17, 2012 - 01:10PM JST ( 14 )

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14 Comments

4

ebisenDec. 17, 2012 - 09:53AM JST

This is generally a good think. China and S. Korea must be forced to freely trade their currency. A lot of bad things happening nowadays in Japan are because of the currency war these two countries, along with US are now playing with Japan.
6

rickyveeDec. 17, 2012 - 11:07AM JST

isn't "but" used incorrectly here? this is not a contrast because a weak yen usually benefits the stock market.
2

Kobuta ChanDec. 17, 2012 - 11:10AM JST

Good news for Japanese manufacturers. Abe needs to print more Yen and let Yen in overseas for buying investing foreign own companies. Yen value need to go down as much as $ 1 = Y-100 in mid 2013.
-4

HowardSternDec. 17, 2012 - 12:41PM JST

Worst news for Japanese domestic economy. If you think people werent spending their money before just wait until the value of the yen falls and prices go up.
3

noriyosan73Dec. 17, 2012 - 01:17PM JST

Is this good news for the USA and other tourists? In 2005 the tourist received 110 yen/ USD. If Tokyo tourism group wants more tourists, the change is better than a give-away of tickets that never happened.
4

KapunaDec. 17, 2012 - 02:17PM JST

0.78 Yen is a plunge??
2

viking68Dec. 17, 2012 - 02:32PM JST

Howard Stern, a higher $/yen exchange rate will adversely impact the cost of imported goods. So, things purchased overseas will cost more. It will hurt foreigners in Japan who are paid in yen and pay this money overseas. It will help foreigners in Japan who earn non-yen currency, e.g., GBP, USD, etc.

A higher exchange rate also will allow Japanese producers to collect more when they sell products denominated in a foreign currency. A higher exchange rate will also bring down the costs of Japanese goods (for overseas consumption) priced in yen. Japan had a net $156 billion trade balance (2008 estimate), so a lower $/yen rate will help Japanese companies collect more money on foreign denominated sales.

There may be some inflation and a raising of bank interest rates, but that was already expected with the JCT increase.

Overall, those adversely impacted by an exchange rate drop will be foreigners working in Japan, Japan's business competitors, and domestic importers.
-2

ScroteDec. 17, 2012 - 02:36PM JST

If the Yen goes down the cost of gas imports will go up. Electricity prices will rise and domestic industry will become uncompetitive. I suppose Abe will counter that by starting up all the nuclear power stations. Anyway, whenever Abe claims the Yen is overvalued he is lying: in inflation-adjusted terms it has about the same value as five years ago.
0

DogDec. 17, 2012 - 03:27PM JST

viking68Dec. 17, 2012 - 02:32PM JST

Overall, those adversely impacted by an exchange rate drop will be foreigners working in Japan, Japan's business competitors, and domestic importers.

Utter rot. Every Japanese household will be affected by the higher cost of fuel imports,

Japanese manufacturers will be hit by the higher cost of raw materials.

Japanese banks will be hit because most of them have got more than 50% of their wealth invested in JGBs.

The only ones that will benefit are the exporting sector of the economy, who contrary to myth only make up 30% of the Japanese economy, and even their benefit is based on shakey ground because consumer spending outside of japan on Japanese products is more to do with lack of demand for high end goods, than the actual price of those high end goods. Americans and Europeans have neither the wealth or the credit to splash out on a new car.
-1

DogDec. 17, 2012 - 03:34PM JST

noriyosan73Dec. 17, 2012 - 01:17PM JST

Is this good news for the USA and other tourists? In 2005 the tourist received 110 yen/ USD. If Tokyo tourism group wants more tourists, the change is better than a give-away of tickets that never happened.

It would be more helpful for foreign tourism to Japan if more people spoke English and not every hotel had only the Cherry Bomb porn channel as an alternative to the garbage terrestrial TV
1

sikdjguguDec. 17, 2012 - 03:45PM JST

better go to the exchange and buy US dollars now for all you japanese who plan to visit hawaii next summer. yen rate will drop to 100Yen ~ 1USD by mid January. you heard it here first.
0

JapanGalDec. 17, 2012 - 05:38PM JST

I just bought a beautiful new oven unit today and it was totally made in Japan. Unless they got that fake percentage of parts thing like America.

I am happy the Yen is getting weaker. I want to bring over $300,000 in dollars from the states.
-1

jeff198527Dec. 18, 2012 - 06:06AM JST

Why buy US dollars? Don't you know what a currency war is? Japan is likely to win this because it has more money than America.
-1

Peter PayneDec. 19, 2012 - 01:36PM JST

Sounds good for exports, which I happen to work in. Our profits will go up, and we'll pay more taxes. Good for Japanese companies, good for anime companies and fans who wonder why the hell a DVD from Japan has to cost $110. Good for tourism, since foreigners can come and have things be cheaper. Not so good for Hawaii/Guam, but they are flexible. I'm sure. And it passes the "at least do SOMETHING" test.