Yen's buying power sinks to 53-year low after decades of stagnation

Pricier imports squeeze Japan households while exports barely budge

20230829N Japan supermarket

Higher import costs have raised prices on Japanese supermarket shelves. (Photo by Makoto Okada)

TOSHIHIRO SATO, HIROFUMI KANAOKA and TAKAHISA TAMURA, Nikkei staff writers

TOKYO -- A gauge of the yen's strength against major currencies like the dollar and euro is nearing a 53-year low, forcing Japan to pay more for imported necessities like energy and food.

The real effective exchange rate -- a measure that is weighted by trade value and accounts for inflation -- came in at 74.31 in July, according to the Bank of Japan's latest data.

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