eli5: How is Japan’s currency so weak if it’s a economic superpower?

Question

eli5: How is Japan’s currency so weak if it’s a economic superpower?

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Answer 1

Japan’s interest rates are at 0. The rest of the worlds have been shooting up. If you were to buy almost any other currency against the yen, you’ll be making interest. Sort of like a dividend for stocks. A lot of money has gone into shorting the yen for this carry trade the past couple years.

Also the Japan’s economy has been stagnate for decades. The economic growth/health of a country affects the relative strength of it’s currency. This is further hindered by their population decline.

Those two things are major contributors to a currency’s relative strength.