- The Yen's weakness is slowly becoming dramatic – Commerzbank
Market news
23 June 2023
The Yen's weakness is slowly becoming dramatic – Commerzbank
Will Yen's weakness become dramatic? Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, is particularly worried.
Fears of a depreciation-inflation spiral
Just in May, core inflation (seasonally adjusted) eased for the first time in a long time, which could justify the first glimmer of hope for an end to the inflation shock. A weak Yen puts this in jeopardy.
Japan's core inflation is still lower than 8 of the other 9 G10 countries. But that is not the key point. Everywhere else it is at least showing the first signs of slowing. Just not in Japan. How could it be, when the central bank is so ostentatiously inactive?
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