Yen weakens in Asia after G20 talks

Japan got a big slap on the wrist

Japan should have gotten a bigger one!

Abenomics has nothing to do with the yen's sudden drop, it's all based upon talk and not due to any actions by either Abe or the BOJ.

The G20 finance ministers pledged not to take any action to weaken their currency in an effort to boost their exports, but isn't this exactly what Japan is doing? I fail to see why Japan is allowed to get away with this. And although the yen has already lost 25% against the euro in the last couple of months, I keep hearing that it's overvalued and should be allowed to fall further. Down to what level? Everyone seems to be of the opinion that the lower the yen, the better for the economy. But what about the consumers who have to pay the already excrutiatingly high electricity bills, want to buy import goods and travel abroad? Their paycheck is not going to go up until the inflation target of 2% is met, until which time they lose buying power with every passing month. And at the end of the day, pay increases will make up a fraction of the increased living expense. And how will those people then support the domestic economy, I wonder?

How come when the USD fell from 110 levels to lower 80s there was no such talks?

1 to 1 for the the yen and the USA penny. If that goal is reached, then tourism will improve in Japan. Several weeks ago the 14 day Japan Rail Pass for the American was $498, and now it is $478. That is $20.00 that the tourist WILL spend in Japan and stimulate the Japanese economy. Yes, it makes USA goods more expensive for the Japanese, but the employment rate in Japan will improve. In 2005 the exchange rate was 112 yen to $1.00. Anyone expat moving back to the USA took a beating, but the anyone moving to Japan had a smile on the face.

noriyosan73: The world (outside of Japan) does not equal America.

slight turbulence, sit upright, only worry that economy will worsen further.

noriyosan73: The world (outside of Japan) does not equal America.

To many here it's Japan, and all other foreigners are American, and to many American's they are the only one's who's opinion counts.

@rowiko68

Politicians don't like to tell the public the other side of the coin as you mention here. The imports cost more, meaning the average Japanese citizens will have a lower standard of living! Less money to travel overseas, less money to splurge.This is no different than in the US with the massive QE printing press or China currency manipulation post 2008 financial crisis although it seems at fair exchange rate now. The purchasing power of US dollar is a lot less than a few years ago, that is what will be happening to Japan under Abenomics!

of course they avoided targeting Japan, why!? because theyve all be doing exactly what Japan is doing, makes them look like a bunch of hyprocrites!

@Tony yes nessasry imports become more expensive but so do the luxury goods, a weaker yen will not stop imports but it will slow them down making domestic items more desirable, buying Japanese made goods in Japan= more jobs and more money staying in the economy. higher yen just accelerates amount of money leaving Japan funding foreign jobs.

"The world (outside of Japan) does not equal America." The dictionary is full of words for every language. Complete thoughts and sentences to clearly explain an opinion is greatly appreciated by all readers. The Japanese government spends money to try to attract tourists. The airlines have promotions for free tickets that are never given away. The only way to have an increase in tourism from the USA and other countries is to have a reasonable exchange rate. It is a big world, and the tourists don't have to go to Japan.

Its a dangerous move, Japan starts to depreciate the yen, all of a sudden the rest of Asia will depreciate their currency, Korea and Singapore is already noticing the impact on their exports. No one will stand by, once everyone devalues their currency, a lot of issues will surfice.

Time to end the disastrous democratic experiment.

The only way to have an increase in tourism from the USA

There are already roughly 85, 000 or so "tourists" from the US in Japan already. Does Japan really want that many more from there alone?

The airlines have promotions for free tickets that are never given away.

And just because you didnt receive one is the basis for your assumption that no one did?

Can somebody please explain to me how inflation - i.e. having to pay more for everything we buy - combined with a heavier tax burden (consumption tax hikes plus "reconstruction tax" to keep the whaling fleet up to scratch), and a massive 20 trillion yen increase in public debt is going to lead to more spending power for the Japanese public?

Can somebody please explain to me how inflation - i.e. having to pay more for everything we buy - combined with a heavier tax burden (consumption tax hikes plus "reconstruction tax" to keep the whaling fleet up to scratch), and a massive 20 trillion yen increase in public debt is going to lead to more spending power for the Japanese public?

Let's not forget a pending pay cut too for the employees of Japan's largest employer.

@wtfjapanFeb. 18, 2013 - 02:59PM JST

@Tony yes nessasry imports become more expensive but so do the luxury goods, a weaker yen will not stop imports but it will slow them down making domestic items more desirable, buying Japanese made goods in Japan= more jobs and more money staying in the economy. higher yen just accelerates amount of money leaving Japan funding foreign jobs.

Rich Japanese will still buy foreign luxury goods regardless of exchange rates. This is a status thing. For the not so rich category, yes, they will switch to domestic production perhaps Shiseido perfume instead of foreign imports but I doubt this is a big category overall. It is the neccessities categories that need to be imported like oil, foodstuff, raw materials that matters most, anything traded in US dollars. Based on this exchange rate 'manipulation' there will probably be at least a 10% decline in standard of living. ( I think it is about 15% in US last few years )

Even if you make the Yen weaker for the short term solution of improving exports, the major problem with future of Japan is the rejection of increase immigration will be the problem for the future of Japan’s retirement system, but also deprives Japan of the pool of skilled workers, engineers, artists, scientists and inventors that immigrants represent. Scientific advances are essential to a country like Japan that are technology based economy. Sure, immigration creates big problems, but lack of it creates bigger ones. Since Japan’s economic problems result from its social problems, their solution will require changes in Japanese attitudes toward women’s roles, immigration and sustainable resource use. Can Japan undertake the painful reappraisals this will require? But this is Japan so I doubt any changes will take place.

Of course the Japanese government is actively pushing for devaluation. Korea and Taiwan are not very pleased with it and are lowering their rates too. What the government is doing is the same as they tried multiple times and will not work (I really don't get why people still believe this) What they should be doing is reform their economy and start thinking paying of their world record level of debts. Anyhow we all know how this ends, new elections.