A falling yen against a strengthening dollar adds up to a probable loss of service members’ cost of living allowance in Japan (Photo by Seth Robson/Stars and Stripes)
YOKOTA AIR BASE, Japan — The declining Japanese yen means many American troops stationed here are likely to lose the allowance they receive to offset the cost of overseas goods and services, according to U.S. Forces Japan.
This month the yen hit a 40-year low against the strengthening U.S. dollar. On Tuesday the dollar was worth more than 162 yen, roughly the same exchange rate seen in December 1986.
“Because the U.S. currency now buys significantly more goods and services on the local economy than it did previously, the supplemental allowance required to equalize purchasing power, commonly known as COLA, is shrinking,” according to a USFJ news release Monday.
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