The Yen Just Hit a 40-Year Low Again

That trip home you were planning just got real expensive, didn't it?

So what’s happening?

Remember that feeling in April when the yen tanked? And again in July? Well, it’s happening again. The yen briefly hit almost ¥162 to the dollar, a number we haven't seen since December 1986. That's right, 1986. Back when your biggest concern was probably learning to walk, not international exchange rates.

So your savings are basically shrinking while you sleep. And that care package of Japanese snacks you wanted to send home? Yeah, you might wanna check the conversion on that again. 🥲

But didn't they… fix it?

You'd think! The government keeps stepping in, making big speeches about "decisive action." Apparently, they spent around $37 billion in July and a whopping $73 billion back in April trying to prop the yen up.

And for a hot minute, it works. The yen gets a little stronger, we all breathe a sigh of relief, and then… it just slides right back down. It’s like trying to patch a giant hole in a dam with a single piece of konbini tape. The effort is there, I guess.

So, are we just doomed?

Kinda feels like it, you know? The real problem is that interest rates in Japan are basically zero (1%), while in the US they're much higher (3.50–3.75%). Big money investors would just rather hold dollars than yen. It makes more sense for them.

Unless one of those countries has a massive change of heart on their money policy, this is probably our new reality for a while. So, uh, who wants to split a Strong Zero and stare at the wall?