The dollar-yen exchange rate has risen into the ¥153 range against the backdrop of the House of Representatives election. The article explains the pitfalls of cutting the consumption tax, the limitations of foreign exchange intervention, and the relationship between rising interest rates and yen depreciation, and examines the structure behind the current yen depreciation.
The yen has weakened to around ¥153 to the dollar, and the view has been presented that the House of Representatives election will accelerate yen depreciation.
The article discusses the pitfalls of cutting the consumption tax and states that the effects of foreign exchange intervention would be limited even if it were carried out.
It examines the relationship between rising interest rates and yen depreciation, as well as the structure behind the continuing yen depreciation and the painful choices involved.