Japan is the world’s largest net foreign creditor and has to look for returns worldwide.
The yen REER is trading almost 27% below its long-term average of 102.2.
The REER is the real effective exchange rate and measures the development of the real value of a country’s currency against the basket of the trading partners of the country. It’s used to assess the equilbrium value of a currency.
The seekingalpha.com article was the source of this post.