Foreign residents in Japan face mounting financial pressures as the yen hit an unprecedented low against the euro, breaking through the 180-yen barrier for the first time since the European currency's introduction in 1999. The historic depreciation, reported by NHK on November 17, 2025, comes amid troubling economic data showing Japan's economy contracted for the first time in six quarters. According to NHK, the New York foreign exchange market saw intensified selling of yen and buying of euros on November 17, pushing the exchange rate past 180 yen per euro—a symbolic threshold that underscores the yen's weakening position in global markets. This development marks a significant milestone in the currency's decline and raises immediate concerns for expatriates managing finances across borders. The currency movement coincides with sobering economic news from Japan's Cabinet Office. GDP data released November 17 shows Japan's economy contracted by 1.8% on an annualized basis during the July-September quarter, marking the first negative growth in six quarters. This unexpected contraction amplifies concerns about Japan's economic trajectory and puts additional downward pressure on the yen. For expats living in Japan, the implications are multifaceted and immediate. Those receiving income in yen but maintaining financial obligations in euros—such as mortgage payments, student loans, or family support in European countries—face significantly higher costs. A monthly payment of 1,000 euros, for example, now requires 180,000 yen compared to approximately 150,000 yen just months ago, representing a substantial increase in real expenses. Conversely, expatriates earning salaries in foreign currencies while living in Japan may find their purchasing power enhanced. Income denominated in euros or dollars now converts to more yen, potentially offsetting rising living costs. However, this advantage applies primarily to those whose employment contracts specify payment in foreign currencies rather than yen-based compensation. The currency volatility also affects international money transfers and remittances. Expats sending money from Japan to Europe should carefully time their transfers, as exchange rates can fluctuate significantly within short periods. Financial advisors recommend monitoring rates closely and considering forward contracts or other hedging instruments for large, predictable transfers such as tuition payments or property transactions. Retirement planning requires particular attention during this period of currency instability. Foreign residents planning eventual repatriation to eurozone countries should reassess their savings strategies, as the reduced purchasing power of yen-denominated assets could significantly impact retirement security. Diversification across multiple currencies may provide protection against further depreciation. Investment portfolios also warrant review. The yen's weakness makes Japanese exports more competitive internationally, potentially benefiting export-oriented companies, while import-dependent businesses face higher costs. Expats holding Japanese stocks should consider sector-specific impacts of currency movements on their holdings. The economic contraction adds another layer of uncertainty. Negative GDP growth may signal reduced business investment, potential employment impacts, and possible policy responses from Japanese authorities. While the Bank of Japan has historically maintained accommodative monetary policy, the combination of economic weakness and currency depreciation could prompt policy discussions. Experts suggest expats take several practical steps: review and adjust budgets to account for exchange rate impacts, explore multi-currency banking options offering competitive rates, consult with tax advisors about currency gains or losses, and consider professional financial planning for significant cross-border transactions. As Japan navigates economic headwinds and currency markets remain volatile, foreign residents should stay informed about economic developments and maintain flexibility in their financial strategies. The historic yen-euro exchange rate serves as a reminder that currency risk remains a significant consideration for anyone managing finances across international borders.