Why is the Japanese Yen
• This slides will answer the question “Why is the
Japanese Yen so strong?”
• It is clear that the Yen is getting stronger than
Dollar while the last 20 years.
• Japanese domestic interest rates are lower than
other country in the world.
• There are so many old people in Japan.
• GDP is about twice the size of U.S.
Why the Yen become strong?
• Yen is become to weak.
• On the other hands, if there is demand and less
supply of Yen, Yen become strong
Trade cash flow
• Exports from Japan bring demand for Yen.
• Because the Japanese goods are sold.
• Imports into Japan create supply of for Yen.
Investment cash flow
• Investments from outside Japan is bring
demand for the Yen.
• This is connect to that the Yen is strong when
there is more demand.
• Investments from Japanese investors outside
Japan bring supply.
• This is connect to that the Yen is weak when
there is less demand.
Trade and invest of Japan and U.S.
• Japan is doing the trade surplus and export
ingmore than importing.
• This is important to keep the strong.
• U.S is importing more than exporting.
• Why the Yen is so strong?
• Because Yen is currency with net.
• Thus, the more Yen are bought that there are