In the Tokyo foreign exchange market on the 2nd, the depreciation of the yen accelerated due to the view that the United States will continue to raise interest rates significantly, and the yen exchange rate fell to the low 140 yen level to the dollar, the lowest level in 24 years.
The effects of the weaker yen are appearing in various areas of daily life and business, including food products such as beef tongue and chicken, and IT companies that use overseas cloud services.
Increase in purchase price of imported beef tongue
At a beef tongue specialty store headquartered in Tomiya City, Miyagi Prefecture, due to the spread of the new coronavirus infection, the factory was not operating sufficiently and the price of American beef remained high. The tongue set meal has been raised from 2300 yen to 2930 yen.
According to the company, the purchase price was around 1,500 yen per kilogram, but as of May this year, it had risen to about 2,300 yen. I am concerned.
The company wants to avoid raising prices even if the price of ingredients rises, so it has reduced the thickness of the beef tongue provided in the set meal by about 1 mm, and has expanded the menu other than beef tongue.
Hiroyasu Ono, head of the president's office at Kisuke, a beef tongue specialty store, said, "Almost 100% of our beef tongue is imported, so if the yen weakens, it will become even more difficult. I want to deal with it," he said.
Nagoya Cochin food cost also rises
"Nagoya Cochin" is a brand of free-range chicken that is characterized by chewy meat and eggs with a rich flavor.
We feed them a mixture of corn and soybeans, but since most of them are imported, due to the depreciation of the yen, the cost of feeding up to shipping has increased by about 250 yen per bird over the past year.
On the other hand, the demand for eating out has declined due to the impact of the new corona, so the shipment volume has fallen by about 30% to 40% compared to before the spread of infection.
Yasuaki Sugimoto, president of Nanbu Shokudori Co., Ltd., which produces Nagoya Cochin, said, "I'm looking for alternatives to reduce feed costs, but I don't have anything good. I'm worried that farmers will go out of business if the yen continues to depreciate. I am concerned," he said.
Yen exchange rate dropped by nearly 10 yen in a month, level for the first time in 24 years
After depreciating rapidly to the 139 yen level to the US dollar in mid-July, the yen rose sharply to the 130 yen level to the US dollar in early August.
After that, the yen depreciated again, dropping to the 140 yen level for the first time in about 24 years.
It is unusual for the yen exchange rate to repeatedly fluctuate by nearly 10 yen in such a short period of time.
Why has the yen depreciated so much?
The Federal Reserve Bank of the United States is rushing to raise interest rates in an attempt to curb historical inflation, and the Bank of Japan continues to implement large-scale monetary easing.
This is because the movement to buy the dollar, which is expected to have high interest rates, continues from the view that the interest rate differential between Japan and the United States will widen further against the background of the difference in direction.
Fed officials, including Chairman Jerome Powell, have recently taken a strong stance toward curbing inflation.
Estimated increase in household expenditure by 78,400 yen
If the weak yen level of 140 yen to the dollar continues until March next year, it is estimated that households with two or more people will spend an average of 78,400 yen more this year than the previous year.
The weaker yen pushes up import prices for daily necessities, mainly because energy-related spending such as food and electricity bills will increase.
It is also said that companies will pass on the increase in purchase prices to sales prices.
By annual income:
Approximately 68,900 yen for households with 3 million to 4 million yen Approximately 74,900 yen for households with
4 to 5 million yen
▽Approximately 7 for households with 5 to 6 million yen
It is analyzed that the burden will be heavier for households with lower annual income,
with an increase in spending of 7,400 yen .
Saisuke Sakai, chief economist at Mizuho Research & Technologies, who conducted the trial calculation, said, "If the weak yen continues for a long time, the burden will increase accordingly, and the painful situation continues, where consumers themselves are required to devise ways to save money. There is."
Overseas cloud services cost increase in yen conversion
The impact of the depreciation of the yen is spreading to IT services used by companies.
The number of Japanese companies using overseas cloud services is increasing, but the fees are often set in dollars.
For this reason, if the yen depreciates, the payment amount converted to yen will increase.
An IT company related to application development in Minato-ku, Tokyo has been using the cloud service "AWS" of Amazon's subsidiary in the United States for six years.
Since the price of this cloud service is also set in dollars, as a result of the depreciation of the yen, the amount of usage and hourly charges for IT companies in June and July this year were converted to yen and were the same as last year. That is an increase of more than 20%.
For this IT company, the cost of cloud services is the second largest burden after personnel costs, but it is difficult to switch to another cloud service in Japan from the viewpoint of functions.
Yasufumi Iorihara, president of the IT company Yapuri, said, "We are keenly aware that costs, including server costs, are steadily rising. We have relied on foreign-affiliated services, mainly in the United States, for IT-related tools. Since then, the impact of the depreciation of the yen has been increasing."
Nanbu Tekki and Arita ware... Raise prices for traditional crafts
The 170-year-old Nanbu Tekki production company in Oshu City, Iwate Prefecture uses a large amount of electricity and iron to cast ironware.
However, due to the recent depreciation of the yen, soaring crude oil prices, and the situation in Ukraine, we received a notification from the power company early last month that they would raise electricity rates next month. I'm in.
In addition, iron ore and coal, which are the raw materials of iron, are dependent on imports, so the price of iron is rising due to the impact of the weak yen.
This company has decided to raise the prices of almost all Nambu Tekki products by 10% to 20% in two installments, next month and next February.
Kuniko Oikawa, president of Oigen Casting, said, "Since the product is not a daily necessity, I'm worried that the price increase will reduce the number of customers."
Arita porcelain production areas in Saga Prefecture are also complaining that the prices of the clay used as raw materials and the gold and platinum used in the painting have risen, forcing them to raise the prices of their products as well.
Ryota Tanaka, a potter of Arita porcelain, said, "I think the impact is becoming quite serious. There are some places that are closing down or suspending business.I'm worried that the productivity of Arita as a whole will decline. I do."
Exports of scallops surged, even though the weaker yen was a tailwind
A seafood processing company in Ishinomaki, which handles scallops from Miyagi Prefecture, exports frozen processed scallops to the United States, Taiwan, and Thailand. It means that export sales by the end of last month were about 2.5 times higher than the same period last year.
In previous years, 70% of the products were for domestic use and 30% for export. It means that we are responding to the work of
Senior managing director of marine products processing company Yamanaka Kenya Chiba said, "Because the price was 40% off last year's price, I feel it's easier to negotiate, and I'm taking it as a tailwind. I'm looking at the possibility that the value of the yen will rise again, and I'm also preparing a domestic sales system. I want to fix it," he said.
Inquiries from real estate investors
According to a company in Otaru, Hokkaido, which brokers real estate transactions mainly for overseas investors, interest in properties in Hokkaido has increased further, mainly from Asian and American investors, and inquiries are continuing. is.
In particular, there are many inquiries about purchasing land and buildings in the Niseko area, Furano, Sapporo and Otaru. It means that there is
On September 1st, an investor in his 50s from Taiwan visited this company and consulted on the purchase of real estate.
This investor said, ``I like the atmosphere of an old Japanese house, and the yen is cheap now, so it's a good place to buy.
Hideyuki Ishii, president of a real estate company, said, "I feel that the real estate market, which has been slowing down due to the corona crisis, is starting to move against the backdrop of recent exchange rate movements. From the perspective of overseas investors, the yen is depreciating compared to last year. If this trend continues, I think more people will come to buy real estate in Hokkaido.”