The Japanese Yen remains under pressure and is currently trading at ¥111.70 against the US Dollar, its lowest since April 2019, having lost more than 1.7% to the greenback since markets opened on Monday.
The Japanese economy is facing a number of headwinds; several analysts believe the country’s economy to be on the verge of a recession, after the latest GDP number pointed at a year on year reduction in the size of the economy in the order of 6.3%. To make matters worse, the nation’s economic woes are being compounded by the coronavirus crisis, which is having an increasingly large impact on the region’s growth prospects. Several observers predict the next quarter to also point at a reduction in the size of the Japanese economy, which would translate into a technical recession. There may be further downside risk for the Yen in the weeks ahead, especially if the coronavirus crisis persists in the region.
