Why is the japanese yen so strong
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  • 1. Why is the Japanese Yenso strong?s1180030 Keisuke Hashimoto
  • 2. Contents•Actual Condition of Yen•Why is the Yes so strong ?•Yen/Dollar Historic Trends•Expected the Opposite•Currency Theory•Japans Trade and investment Cash Flow•Demand for Japanese Assets•My conclusion
  • 3. Actual Condition of Yen・Yen is stronger than dollar recently a 15-year.Therefore, The competing power of exportgoods and earning power are decrease.・Strong yen is causing decrease of GDP anddownturn of business conditions.
  • 4. Why is the Yen so strong?・The cause for the strong yen is that currencyis net inflows.・Profit of low investment in rest of the worldsector.・Japan expect monetary policy in the US.
  • 5. Yen/Dollar Historic Trends・During the last 20 years in clear, the yen isstronger than dollar.・An exchange rate of Yen and dollar hasfluctuation pattern. Current yen/dollar trends fitpast fluctuation pattern.
  • 6. Expected the Opposite・The domestic interest rates in japan is thelowest in the world.・Aging population of Japan attenuate economicgrowth compare to U.S.・Public debt of Japan is twice as many as U.S.
  • 7. Currency Theory・A weak yen : When more supply and lessdemand.・A strong yen: When more demand and lesssupply.Now, Japan is more demand and less supply.So, a strong yen.
  • 8. Japans Trade andInvestment Cash Flow・Japan is exporting more than importing andthe trade income is surplus. But this cause astrong yen.・To mend a strong yen, Japan should decreaseexport and increase import.・Japanese assets is popular from foreigninvestor to market instrument.
  • 9. Demand for JapaneseAssets・Foreign reserves diversification cause astrong yen.・Japanese domestic interest is the lowest inthe world.・U.S. Federal Reserve conduct more activemonetary easing than Japanese bank.
  • 10. My conclusion・Japan has a strong yen now. Japanese tradeis more export and less import. So, Japan hasa strong yen. A statesman have to solve thisproblem. Japanese domestic interest is thelowest in the world. A statesman consider theproblem but, cannot solve this problem.