Incomes in Japan are forecast to rise once again in inflation-adjusted terms if the yen continues to strengthen, finally bringing to an end a record-setting and demoralizing decline in real pay.
The Japan Research Institute anticipates real wage growth turning positive in the July-September quarter assuming ?155 to the dollar. On Wednesday, the currency broke that level and kept going, staging a dramatic comeback from the nearly ?162 level in early July.
“It seems most plausible that the yen’s weakness is at its peak now and the currency will begin to appreciate,” said Shinichi Nishioka, a senior researcher at the Japan Research Institute.
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