What Are the Reasons for the Yen’s Continuous Depreciation?

Xiaohuang: DOORM, what are the reasons for the yen’s continuous depreciation over the past few years?

DOORM: Xiaohuang, the yen’s continuous depreciation is due to several factors. First, the Bank of Japan has long implemented an accommodative monetary policy, including low interest rates and quantitative easing, which has increased the supply of yen and led to a decline in its exchange rate. Second, Japan’s economic growth has been sluggish, and inflation rates have been low, reducing demand for the yen. Lastly, global economic changes, such as the Federal Reserve’s interest rate hikes and a stronger dollar, have also put pressure on the yen’s exchange rate.