Japanese Yen Plummets to 24-Year Low

The Japanese Yen (JPY) is one of the currencies hardest hit by the strengthening of the US dollar this year. On Thursday (13/10/2022), the yen's exchange rate plummeted to its lowest level in 24 years, or since August 12, 1998, as seen in the graph.

The continuous rise in US Federal Reserve interest rates this year has weakened global currencies against the "Greenback," the US dollar's nickname in the foreign exchange market.

Based on Yahoo Finance data, the yen's exchange rate against the US dollar was traded at 146.77 per US dollar in global trading on Thursday (13/10/2022) until 16.34 WIB. Thus, the currency weakened again by 0.6% compared to the previous day's closing.

Compared to the end of December 2021, the yen's exchange rate against the US dollar has weakened by 27.56% (year-to-date/ytd). Similarly, compared to October 13, 2021, the Japanese currency has shrunk by more than 29% (year-on-year/yoy).

The strength of the US dollar against major world currencies is reflected in the US dollar index (DXY), which has risen 18.45% this year to 113.32 on Thursday (13/10/2022).

The following shows the weakening of the exchange rates of 6 major world currencies against the US dollar (December 31, 2021 - October 13, 2022):

* Yen (Japan) weakened 27.58% (ytd) to 146.78 per US dollar.
* Krona (Sweden) weakened 25.13% (ytd) to 11.321 per US dollar.
* Pound sterling (UK) weakened 17.31% (ytd) to 1.116 US dollars.
* Euro (European Union) weakened 14.06% (ytd) to 0.973 US dollars.
* Franc (Switzerland) weakened 9.23% (ytd) to 0.998 US dollars.
* Dollar (Canada) weakened 8.33% (ytd) to 1.381 per US dollar.

Meanwhile, the rupiah exchange rate in the Jakarta Interbank Spot Dollar Rate (JISDOR) closed at Rp15,357 per US dollar on Thursday (13/10/2022). Thus, the rupiah has weakened by 7.56% (ytd).