# Explainer: Why has the Japanese yen been so weak?

> The Bank of Japan kept short-term rates between 0 and 0.1% in April without signaling imminent rises. That made the yen the lowest-yielding G10 currency, prompting investors to borrow it cheaply and sell it for higher-yielding currencies.

- Date: 2024-05-01 · published 2024-05-01T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/30961-explainer-why-has-the-japanese-yen-been-so-weak
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Persistent yen weakness and carry-trade flows strengthen the dollar against Asian currencies, which can make US commodities more expensive for Japanese buyers and shift import demand.

## Read by commodity

- DXY: bullish ▲
- USDJPY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-07-01 | [Why has the dollar been so strong – and can it continue?](https://feedsoft.ai/events/40856-why-has-the-dollar-been-so-strong-and-can-it-continue.md) | +1.2% | +0.7% |
| DXY | 2026-03-27 | [Japanese yen hits 160 per dollar, weakest since July 2024](https://feedsoft.ai/events/20402-japanese-yen-hits-160-per-dollar-weakest-since-july-2024.md) | +0.1% | -1.4% |
| DXY | 2022-07-13 | [Explainer: Why the euro's fall below parity versus dollar matters](https://feedsoft.ai/events/40708-explainer-why-the-euro-s-fall-below-parity-versus-dollar-matters.md) | -0.8% | -1.3% |
| DXY | 2021-06-22 | [Explainer: Why the US Fed’s  policy  move matters to India?](https://feedsoft.ai/events/46887-explainer-why-the-us-fed-s-policy-move-matters-to-india.md) | -0.7% | +0.8% |
| DXY | 2022-05-01 | [The Bank of Japan may have limited tools to deal with the weak yen, but that's not its focus](https://feedsoft.ai/events/42074-the-bank-of-japan-may-have-limited-tools-to-deal-with-the-weak-yen-but-that-s.md) | +0.3% | -1.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/japan-hiked-interest-rates-why-is-yen-falling-2024-03-25/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.