The Japanese yen paired with the US dollar is devaluing at a rapid pace. The current USDJPY exchange rate stands at 145.49.
Due to the interest rate differential and monetary sentiment, the JPY exchange rate remains under significant pressure. This is occurring even amid a slight adjustment in the Bank of Japan's monetary policy.
Japan's GDP for Q2 2023 grew by 1.5% q/q against the forecasted growth of 0.8% and the previous increase of 0.7%. On a year-on-year basis, the Japanese economy skyrocketed by 6.0%, exceeding expectations twofold.
The weak yen has presumably provided substantial support to exporting companies. In turn, these companies have replenished the country's budget well, allowing for the preservation of infrastructure and social expenditures.
Currently, devaluation remains the only viable option for the JPY.