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What is a Weak Yen?
The value of the yen is influenced by several elements, such as interest rates, inflation, and 6️⃣ economic growth. At present, the yen is weak due to the Bank of Japan maintaining a loose monetary policy, unlike 6️⃣ most main economies that are tightening theirs. This gap in interest rates has led to the yen's devaluation.
Future Expectations and 6️⃣ Challenges
How can companies mitigate weak yen risks?
Companies can reduce the risk linked to a devalued yen by utilizing hedging strategies 6️⃣ and diversifying their operations and supply chains. These actions can maintain strong long-term operationals and minimize risk by lessening exposure 6️⃣ to unfavorable currency movements.
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