Strong yen dipping into troops’ pockets

Holiday shopping for servicemembers in Japan is a little harder this year because the dollar's value has dropped against the yen. On Friday, Capt. William Carpenter chose to shop at the Post Exchange at Camp Zama. Other servicemembers said they feel a crunch this year because their cost-of-living allowance hasn't changed to reflect the weaker dollar.


Strong yen dipping into troops’ pockets
By Teri Weaver, Stars and Stripes
Pacific edition, Tuesday, November 27, 2007

Servicemembers in Japan will see a steady or slightly lower cost-of-living allowance in their paychecks this week, despite the dollar’s fall to 2½-year low Wednesday against the yen, according to military finance officials.

The stagnant COLA rate comes after servicemembers in Japan enjoyed a more favorable exchange rate this spring and summer, according to Chief Petty Officer John Valentin, the leading chief petty officer for military pay at Personnel Support Detachment at Yokosuka Naval Base.

For much of the year, a dollar bought at least 116 yen and often bought as much as 120 yen or more.

“Back in May this year, the rate was 117,” Valentin said. “We were drawing a COLA similar to the rate we draw now.”

To counter those richer days earlier this year, the Pentagon already had scaled back COLA rates to some servicemembers in Japan in October.

But as of Wednesday, a dollar bought only 108.5 yen, according to the Federal Reserve Board’s Web site. The last time the dollar fell lower was in June 2005.


Rest of article at: http://stripes.com/article.asp?section=104&article=50518