The exchange rate of the Japanese yen against the US dollar reached its lowest level in the last 20 years and four months on June 13.

The exchange rate of the national currency is now 134.55-134.56 yen per dollar. This is the lowest figure since February 2002.

The US Federal Reserve System and European central banks, unlike the Japanese regulator, are tightening monetary policy after the economic recovery amid the end of the coronavirus pandemic. This stimulated the sale of the yen, given the gap in interest rates.

The depreciation of the yen has led to an increase in prices for imported goods, primarily energy.

Large companies incur large expenses.

On June 7, it was already reported that the exchange rate of the Japanese yen against the dollar reached a twenty-year low. The country’s Finance minister, Shunichi Suzuki, said that the authorities “with high concern” are monitoring the trends of the yen and “the possible negative effect that this may have on the Japanese economy.”

And also in Japan, the depreciation of the national currency leads to an increase in prices for imported goods, primarily for energy carriers.

Before that, on June 7, it was reported that the Japanese authorities, against the background of a projected shortage of electricity next winter, are urging the population to save electricity this summer.

Earlier, on May 30, it became known that the number of items of goods in Japan, which will be affected by the price increase by the end of the summer, will be at least 8.3 thousand.
According to the Bank of Japan, the wholesale price index in the country rose by 10%, as stated in the regulator’s message, thereby demonstrating the sharpest growth since January 1981. Analysts believe that this is primarily due to the rise in prices for energy and raw materials, which followed in connection with anti-Russian sanctions.

About 8% of Japanese supplies are accounted for by the Sakhalin-2 project, which was created as a joint venture of the Russian company Gazprom, the British company Shell and two Japanese companies, Mitsui and Mitsubishi. Currently, Japan is in a difficult situation, as the United States and other countries have called for a boycott of energy exports from Russia, the most important source of Japanese LNG
the country’s exports declined back in 2020 due to logistics problems associated with the coronavirus pandemic, as well as due to increased demand from China. In addition, sanctions against Russia, one of the world’s largest LNG suppliers, further reduced supplies, which caused a sharp rise in prices.