The wider risks from a falling yen

Kishida’s government faces a dilemma as even Japan Inc is voicing its concerns. China’s response to the continued depreciation of the Japanese currency also bears watching.

A man walks by an electronic screen displaying a graph showing Japanese Yen exchange rates against the US dollar in Tokyo, on May 2. PHOTO: REUTERS
New: Gift this subscriber-only story to your friends and family

It has been ages since the fate of global markets sat in the hands of Tokyo officials. But the falling yen shines an unwelcome spotlight on tensions in Japan’s economy, strains that could have spillover effects on geopolitics from Beijing to Washington.

If the value of Japan’s currency keeps dropping – and odds are, it will – you can bet Chinese leader Xi Jinping is mulling over options for his nation’s economy, Asia’s biggest.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.