PSPINC CEO Kenichi Uchikura's Blog

For many US companies, the recent decline in dealings with Japanese counterparts may not seem significant at first glance. However, it's crucial to recognize the underlying dynamics, especially concerning the exchange rate between the US dollar and the Japanese yen, which currently stands at its highest level in over 30 years. 

This shift means that each US dollar holds greater value in Japanese yen compared to previous years. On the bright side, this spells good news for those purchasing products from Japan, as their US dollars can now procure more in yen. Similarly, Japanese companies selling goods to the US stand to benefit, as their products become more affordable to American consumers due to the stronger purchasing power of the US dollar.

Additionally, for travelers heading to Japan, the increased value of the US dollar translates to enhanced buying power, allowing them to stretch their budget further and enjoy more during their stay.

However, for businesses like ours that primarily sell products to Japan in Japanese yen, this situation presents challenges. The stronger US dollar means that our products may appear more expensive to Japanese buyers, potentially impacting sales and profitability.

Likewise, individuals traveling from Japan to the US may find that everything seems more expensive due to the weakened purchasing power of the Japanese yen against the US dollar. 

In summary, while the exchange rate fluctuations offer advantages and disadvantages depending on the perspective, it's essential for businesses and individuals alike to adapt their strategies accordingly to navigate these economic shifts effectively.