USDJPY has been growing for the third consecutive trading session.
The Japanese Yen is quickly falling against the USD. The current quote for the instrument is 110.20.
The problem is probably not the external background – of course, there is a demand for risks, which reduces the interest to the “safe” Yen. However, the key reasons are more global, for example, the semiconductor supply shortage. That’s quite a hit in the Japanese economy’s pocket because it’s the reason why Toyota is ready to shut down 14 facilities and reduce the output by 40% in September alone.
Shortage of chips may remain an issue at least until the end of 2021 if the pandemic continues to have a negative influence on businesses in Asia. The increasing number of new coronavirus cases in Japan, Malaysia, and China forces manufacturers to be more cautious when planning long-term. It’s not good news for the Japanese economy.
The semiconductor crisis did a lot of damage to the Japanese car manufacturers. Decreases in tax payments will influence both the country’s budget and economy in the future. Shutdowns of car factories will surely affect the export, the thing that is supporting the current recovery of the Japanese economy. However, no one can say right now when this crisis is over.