Why is the Japanese Yen strong? s1160235 Yasuhiro Yamamoto
Summary Now, the question increase such as“Why is the Japanese Yen so strong?”This slides will show you the reasons.
Historic TrendsIt is clear that the Yen is getting stronger than Dollar while the last 20 years.
Japanese stuationJapanese 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.
How the Yen become strong?If the Yen was not to be needed in othr words, there is no demand, Yen is become to weak.On the other hands, if there is demand and less supply of Yen, Yen become strong.
Trade cash flowExports 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.SJapan is doing the trade surplus and exporting more than importing. This is important to keep the strong. U.S is importing more than exporting. This weakens the U.S.
Conclusion Why the Yen is so strong? Because Yen is currency with net.Thus, the more Yen are bougt that there are Yen sold.