1-2b. What is “weak yen”?

The Term “yen depreciation” refers to a drop in the value of the Japanese yen. The yen will fall if the price of the US dollar/yen rises.

When compared to a previous point in time, a "depreciation of the yen" is a "condition in which the value of the Japanese yen is comparatively low."


If you swap all 10,000 yen in your pocket for US dollars, the conversion rate is "100 dollars if 1 US dollar = 100 yen," but "1 US dollar = 80 dollars if 1 US dollar = 125 yen."

When 1 US dollar equals 125 yen versus 100 yen, you can only swap for less US dollars, even though the amount of 10,000 yen is the same.

This is a situation in which the Japanese yen is worth less than the US dollar; in this case, "1 US dollar = 100 yen" became "1 US dollar = 125 yen," resulting in a "yen devaluation of 25 yen." It is possible to state. When the rate between the US dollar and the Japanese yen rises, it indicates that the Japanese yen has weakened versus the US dollar.