Japanese Yen leads drop among G10 currencies 2024

(MENAFN) Throughout the current year, the Japanese yen has emerged as the weakest performer among the G10 currencies, experiencing a substantial depreciation of 10.64 percent against the US dollar, with the exchange rate reaching 157.83 yen per dollar. A news agency has reported notable declines among other G10 currencies, with the Swiss franc depreciating by 5.93 percent against the dollar and the Norwegian krone falling by 4.89 percent. The Australian dollar saw a more modest decline of 0.41 percent, while the euro dropped by 1.20 percent against the dollar.

Conversely, the British pound has emerged as a standout performer, appreciating by 2.02 percent against the US dollar since the beginning of the year. This divergence in currency performance underscores the diverse economic conditions and market sentiments influencing the G10 currencies. The pronounced weakness of the yen is particularly noteworthy, reflecting broader economic challenges and differing monetary policies compared to other major economies.

The yen’s decline can be attributed to several factors, including Japan’s sluggish economic growth, persistent deflationary pressures, and contrasting monetary policy strategies pursued by the Bank of Japan compared to other central banks. These dynamics have contributed to investor sentiment favoring currencies from economies showing stronger economic resilience and policy frameworks conducive to growth. The yen’s underperformance against the US dollar and other major currencies underscores ongoing challenges within Japan’s economic landscape and highlights the impact of global economic trends on currency markets.