A 10% drop in the yen since December has forced Japan to scale back defense spending, Reuters reported.
The currency's decline has boosted the cost of US-made weapons that Japan plans to procure.
In response, Japan is prioritizing frontline weapons and spending less on support systems.
AdvertisementAdvertisementJapan is scaling back plans for its largest military build-up since World War II, after weakness in the yen raised the cost of US-made defense equipment, sources told Reuters.
In response, Japan is prioritizing outlays on US-made frontline weapons that would be key in any conflict with China, sources told Reuters.
Persons:
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Organizations:
Reuters, Service, Industries, Federal Reserve, Bank of Japan, Deutsche Bank
Locations:
Japan, China