Yen's purchasing power hits all-time low, at one-third of peak

Japanese households see annual costs rise $560 on costlier food and energy

Imported foods such as U.S. beef for gyudon beef bowls, center, are becoming more expensive for Japan's companies and consumers. (Source photos by Nikkei)

RYO SAEKI, HISASHI TSUTSUI and TAKUMI SASAKI, Nikkei staff writers

June 29, 2024 02:00 JST

TOKYO -- Japanese households face a 90,000 yen ($560) increase in their yearly expenses from higher prices for food and energy imports, one estimate shows, as the country's weak currency drains purchasing power.

The yen depreciated as far as 161.20 to the U.S. dollar on Friday, the lowest in over 37 years. Japan's government said on Friday it will replace top currency diplomat Masato Kanda, but this announcement is expected to have limited impact on the market.