For the first time since April 2009, Yen has fallen as low as 101.20 per dollar, down by another two percent from Thursday‘s rate of 98.65. In the past six months yen has declined above 20% against the US dollar.
The sudden drop is believed to help exporters profit .The Japanese yen have not been able to exceed the level of coming close to the 100 yen to the US dollar .
According to reports and data released, applications for unemployment insurance had fallen to its lowest level for the first time in five years.
For the past two weeks, foreign bonds have been said to have been bought by Japanese investors for an estimate net total of 514bn yen ($5.2 billion) which is a sign of a massive monetary which might push to seek higher profits abroad.
A weaker yen is a benefit for Japanese exporters and makes good cheaper to foreign buyers for the exporters which could help boost sales such as Toyota and Sony, have reportedly increased their profits due to the weak Japanese yen.
However, the yen’s fall might not be all good for the economy as if the economy doesn’t show any signs of improving the cost of raw materials and energy of imports will increase which would not benefit the Japanese economy. “For manufacturers, overall we are thankful that the trend is the yen’s depreciation, but we are seeing signs of raw material costs rising. Of course that does not mean we will decrease manufacturing in Japan, but we need to think how these costs can be absorbed,” Yasuyuki Yoshinaga, CEO of Fuji Heavy Industries Ltd says to reports.
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