How Low Can the Yen Go?

The video discusses the depreciation of the Japanese yen, which has fallen significantly against the dollar, making it undervalued compared to other developed market currencies. This depreciation affects Japanese consumers, who face higher costs abroad, and businesses, which struggle with increased import costs. The government and businesses express mixed feelings about the weaker yen. Future projections suggest further depreciation, with potential impacts on trade deficits and economic stability.

What percentage has the yen fallen against the dollar over the past two years?

• 15%

• 26%

• 35%

• 40%

What is one consequence of the yen's depreciation for Japanese tourists visiting the US?

• Lower hotel rates

• Increased cost for a Big Mac

• Cheaper travel expenses

• Higher costs for local goods

What concern do businesses have regarding the weaker yen?

• Lower domestic sales

• Decreased export opportunities

• Increased competition from foreign companies

• Rising costs for importing raw materials

What is the median forecast for the yen's exchange rate against the dollar next year?

• 107

• 115

• 128

• 135

Which financial institution predicts the yen could weaken to 128 against the dollar?

• Mitsubishi

• J Morgan Stanley

• BNP Paribas

• Bank of Japan