W11 b


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W11 b

  1. 1. Why is the Japanese Yen so strong? What is its implications for an export-driven economy like Japan? s1170048 Susumu Ito
  2. 2. ContentsBack ground●Disaster of an earthquake●The reason of high value of the yen●Effect of high value of the yen●Reference●
  3. 3. Back ground●It was depressed from a problem of theAmerican real estate worldwide, but Japanbecame the strong yen adversely.●In addition, Japanese economy suffers crushingdamage by an earthquake disaster, and theNikkei Stock Average really slumped very much,but the exchange rate changes for strong yen.
  4. 4. Disaster of an earthquake●When an earthquake disaster is generated,expectation for Japan falls and becomes thetendency to weak yen.●However, the exchange becomes the strongyen now for some reason.
  5. 5. The reason of high value of the yen●As managerial decisions and investmentjudgment of the company, it becomes hard totake a surplus risk including the overseasinvesting when you suffer such serious damage.●In addition, you really dispose of the overseasassets and go back up to the yen, and it isthought that there are many companies to beunder the pressure of necessity to use.
  6. 6. The reason of high value of the yen●For example, it is thought that the insurancecompany sells overseas assets as well as thesale of domestic assets for payment of theinsurance and corrects it to the yen.●Because "the yen" as the cash is necessary topay the insurance, the yen becomes higherbecause you sell assets except the yen andexchange it with the yen
  7. 7. The reason of high value of the yen●Cash of the yen is necessary to work in thecountry even if I make the company.●Furthermore, the company cannot afford to rollthe money that remained abroad because I havebeen in such a situation.
  8. 8. Effect of high value of the yen●A Japanese company gets hard more when itbecomes the strong yen.●In addition, the stock price of more Japanesecompanies slumps and becomes a hindrance tothe revival.
  9. 9. Effect of high value of the yen●If strong yen advances, it becomes difficult forJapan to sell a product abroad. In addition, thetourism is affected because the tourists from theforeign countries decrease.●It is demanded from the government and theBank of Japan that I support an exchangemarket by every means including the foreignexchange intervention thoroughly if strong yenaccelerates and does not seem to stop.
  10. 10. ReferenceWhy is the Japanese Yen so Strong●http://www.stocktrendinvesting.com/blog/why-japaneWhy The Yen Is So Strong●http://financialedge.investopedia.com/financial-edgeWhy is the yen strong?●http://business.blogs.cnn.com/2011/03/17/japan%E