Japan's yen is at its weakest in decades and inflicting high costs of imported food and fuel on households and businesses, but also proving to be an unexpected tailwind for multinationals such as pharmaceutical giant Takeda.
As the Bank of Japan reiterated its commitment to loose monetary policy on Friday, affirming its position as a standalone dove in a global environment of rising inflation, the yen edged back towards the ¥135.60-per-dollar lows it struck this week. It is down 14% against the U.S dollar this year.
Households have complained of the effect on their wallets. Nearly half of companies that responded to a Tokyo Shoko Research poll this week said the weaker yen would have a negative impact on their businesses. Only 3% said that it would be a good thing.