High Yen “Harming Economy”

The value of yen has reached 84 yen to 1 dollar, the highest it has been since the mid-1990s. A high yen is harmful to the economy because it damages the competitiveness of Japanese exports. Exports from Japan have been the “engine” of Japan’s growth. There is not much that the government can do to fix the yen condition. This is because it is the dollar that is selling, rather than the yen buying. Japan’s economic recovery is being threatened by deflation. Also, the strength of the yen can mean that imports and raw materials will become cheaper. On the good side, recent figures have shown that unemployment has falling.


One Response to “High Yen “Harming Economy””

  1. I agree how Japan cannot control the strength of yen and how it can harm the economy. But on the other hand it’s good that “unemployment [rates] has falling”. lol grammar 🙂

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