Japan’s currency is on a historic slide. Host Carmel Crimmins talks to Rocky Swift, chief correspondent for markets in Japan, about what Tokyo is doing to shore up the currency and the implications for the rest of the world. Sign up for the ⁠⁠⁠⁠⁠Reuters Econ World ⁠⁠⁠newsletter⁠⁠⁠⁠⁠⁠⁠ Catch Reuters Morning Bid ⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠ For information on our privacy and data protection practices visit the Thomson Reuters Privacy Statement. Learn more about your ad choices. Visit megaphone.fm/adchoices Further Listening: Japan&#x27;s debtCarry Trade Fed talk Our Standards: ⁠⁠The Thomson Reuters Trust Principles.⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

The yen

Reuters Econ World

Right now, it takes about 162 Japanese yen to buy one US dollar. The last time it took that many yen to buy a buck was 1986. Ronald Reagan was in the White House. Top Gun, the original Top Gun, was in movie theatres. Madonna was telling Papa not to preach. You get the picture, a long time ago. Now, you might think the value of the yen is irrelevant to you, unless you live in Japan or you're heading there on vacation.

But that's not true. You see, the Japanese government has vast holdings of US government debt, and the yen is used by investors all around the world to invest outside of Japan. They borrow in yen, convert it to US dollars, and use it to buy higher-yielding assets, a manoeuvre that's known as the carry trade. So when the value of the yen rises or falls sharply, that can cause ructions on financial markets, affecting your investments and your borrowing costs.

So on this week's show, we want to look at why the yen has fallen so sharply and what can be done about it. We're getting into currency interventions, interest rate differentials, all that good stuff. So stick with me. I'm Carmel Crimmins, and this is Reuters Econ World. Every week we go deep on the economic principles and ideas, driving the biggest news around the world. On this week's show, the yen.

Meditieren, Yoga, Joggen, nichts entspannt mich. Echt? Mich entspannt meine Steuer total. Steuer? Wie Finanzamt? Die Steuererklärung? Ja, ich hab ganz locker über 1000 Euro Zugriff bekommen. Hast du geheime Connections oder Excel-Superkräfte? Nö, nur die Wieso-Steuer-App. Wow, und das ist einfach? Klar, die macht fast alles automatisch. Ich fühl mich plötzlich so. Entspannt. Hol dir dein Geld zurück. Abgabefrist 31. Juli.

The yen

Read the full transcript

The candid version is on a podcast,
not the earnings call.

The yen

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.