Japanese Yen To Us Dollar Exchange Rate History
The exchange rate between the Japanese yen and the US dollar has a long history that dates back to the post-World War II era. During this time, the yen was pegged to the dollar, with an exchange rate of ¥360 per US dollar. This remained the case until 1971 when the United States abandoned the gold standard, and the value of the dollar began to fluctuate.
The 1970s
During the 1970s, the yen appreciated against the US dollar, reaching a rate of ¥200 per US dollar in 1978. This was due to a number of factors, including the oil crisis and Japan's position as a major exporter of goods to the United States.
However, in the early 1980s, the yen began to depreciate against the dollar, reaching a low of ¥260 per US dollar in 1985. This was due in part to the Plaza Accord, a joint agreement between the United States, Japan, Germany, France, and the United Kingdom to devalue the dollar in order to reduce the US trade deficit.
The 1990s
In the 1990s, the yen continued to fluctuate against the dollar, reaching a high of ¥79 per US dollar in 1995. This was due in part to Japan's economic bubble, which burst in the early 1990s, leading to a period of economic stagnation.
Despite this, the yen remained a strong currency, and in 1998, it became the third most traded currency in the world, behind only the US dollar and the euro.
The 2000s
In the early 2000s, the yen began to depreciate against the US dollar again, reaching a low of ¥124 per US dollar in 2002. However, by 2007, the yen had appreciated once again, reaching a rate of ¥117 per US dollar.
During this time, Japan's economy continued to struggle, with low growth and deflationary pressures. This led to the Bank of Japan implementing a number of monetary policies in an attempt to stimulate the economy.
The 2010s
In the 2010s, the yen continued to fluctuate against the US dollar, reaching a high of ¥75 per US dollar in 2011. This was due in part to the earthquake and tsunami that struck Japan in March of that year, which led to a period of economic uncertainty.
However, by 2015, the yen had depreciated again, reaching a rate of ¥125 per US dollar. This was due in part to the Bank of Japan's decision to implement negative interest rates in order to stimulate the economy.
The Present Day
Today, the exchange rate between the Japanese yen and the US dollar continues to fluctuate. As of August 2021, the rate is approximately ¥110 per US dollar. This is due in part to the ongoing COVID-19 pandemic and its impact on the global economy.
Despite these fluctuations, the yen remains a strong currency and is widely traded around the world. Its history with the US dollar is a reflection of the economic and political relationship between Japan and the United States, which has evolved significantly over the past several decades.