The Bank of Japan, reflected in the glass wall of its adjunct museum in Tokyo. Historically low to negative interest rates have forced Japanese investors to seek returns outside Japan. Photo: AP
Opinion
Opinion
Macroscope
How the Japanese yen stays strong despite a faltering domestic economy
- The yen’s strength derives from its safe-haven status and the fact that much of Japan’s wealth is held overseas, in foreign assets and currencies; in a crisis, investors repatriate the yen, boosting its demand and giving it strength
The Bank of Japan, reflected in the glass wall of its adjunct museum in Tokyo. Historically low to negative interest rates have forced Japanese investors to seek returns outside Japan. Photo: AP