▪ The dollar to yen exchange rate has recently risen to its highest rate since April 2002.
▪ The Korean government should determine the reasons for the yen’s weakness and its consequences on exports.
▪ The yen’s recent decline has been attributable to the differentiation (decoupling) of monetary policy between the US and Japan.
▪ Major economic forecasting institutions predict that the USD/JPY exchange rate will hover around 120 yen in 2022.
▪ The impact of the recent yen depreciation on Korea’s exports is likely limited.
▪ The Korean government should closely monitor and identify countermeasures for increased currency volatility and impacts on each industry.