Yen Threat
The yen-dollar exchange rate is reciprocally fueling the downward sprawl of yen, potentially hurting the Korean economy.
The Ministry of Strategy and Finance reported in the latest edition of their Green Book, a publication detailing the latest economic trends, that US quantitative easing and Japan’s depreciation of the yen are potential external economic threats.
It is the first time since early 2013 that the MISF had identified the weakened yen as a potential external threat. Only quantitative easing had been labeled as a threat, previously.
According to the MOSF, the continued depreciation of the yen has accelerated the current of international cash flow, and in the anticipation of a sales tax hike it has become necessary to monitor the yen, along with US quantitative easing.
This report was released as the yen-dollar exchange rate climbed up to 105.04 yen per dollar, a 18.26 percent increase from the same period two years ago.