Why has the yen fallen to a decade’s low and what does it mean for Japan’s economy?

A pedestrian walks past a display showing the foreign exchange rate between Japanese yen and US dollar as the value of the currency falls. Photograph: Kimimasa Mayama/EPA

The value of Japan’s currency has tumbled so much, that its value is back to where it was in 1990, shortly after Japan’s famous “bubble economy” burst. For a moment on Monday it was trading at 160 yen to US$1. A few years ago, it was closer to 100 yen to US$1.

The yen’s accelerating slide could ultimately be bad news for people in Japan. A weaker yen squeezes households by increasing import costs. Japan is heavily reliant on imports for both energy supplies and food, meaning inflation could rise.