Dominguez: Yen appreciation not a threat to U.S. economy

September 21, 2023 Marketplace

Katherine Dominguez, Marketplace: If the yen jumps around too much, anyone that wants to trade with Japan might hold off. Supply chains could seize up. Kathryn Dominguez, a professor at the University of Michigan, said this is not the time for that to happen.

“The world economy is fragile, and the U.S. feels it would be in their best interest for all of the … especially advanced economies, to continue to thrive,” Dominguez said.

Dominguez said a stronger yen could boost the Japanese economy. That’s because Japan imports a lot of products. Especially energy and raw materials. “So as the yen appreciates, they basically have to spend less yen, in order to purchase the same amount of fuel and raw materials,” Dominguez said.

And Dominguez said a stronger Japanese economy could increase demand for American products.