The yen's real-term strength has dropped to its lowest since the 1970s, hurting Japan's external purchasing power as trade deficits and rising oil prices add to structural selling pressure, Nikkei reported Wednesday, citing the Brookings Institution's Robin Brooks.
Over the weekend, Brooks posted on X that the Japanese yen has dropped below the Turkish lira in real effective terms, making it now the world's weakest currency, the news daily said.
Brooks referred to the real effective exchange rate, which measures the yen's overall strength against multiple currencies by adjusting for price changes and trade volumes, the publication said.
This rate increases when a country's inflation outpaces others and decreases when it lags behind, the report said.
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