Why is the Japanese Yen so Strong              s1180091          Masayoshi Kataoka
Contents•    Introduction•    Yen/Dollar Historic Trends•    Expected the Opposite•    Demand for Japanese Assets•    Case...
Introduction●    Recently, the Yen was the highest level the    currency has hit.●    I think that why the Yen so strong a...
Yen/Dollar Historic Trends●    The Yen/Dollar exchange rate has a    fluctuating pattern with continuous lower    tops.●  ...
Expected the Opposite●    The domestic interest rates in Japan are    about the lowest in the world and not very    attrac...
Demand for Japanese Assets●    Japanese assets coming from partly foreign    reserves diversification.●    Japanese intere...
Case of Currency Impact●    The initial reaction in the currency markets    was a strengthening in the value of the yen   ...
The Strong Yen Characteristics●    It’s a stable currency and a relatively    economy that’s not affected so much by    gl...
Conclusion●    I knew why Japanese Yen so strong    alongside of Dollars.●    I understand that Japanese Yen might need   ...
Reference●    http://www.stocktrendinvesting.com/blog/    why-japanese-yen-so-strong●    http://business.blogs.cnn.com/201...
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Why is the Japanese Yen so Strong

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Why is the Japanese Yen so Strong

  1. 1. Why is the Japanese Yen so Strong s1180091 Masayoshi Kataoka
  2. 2. Contents• Introduction• Yen/Dollar Historic Trends• Expected the Opposite• Demand for Japanese Assets• Case of Currency Impact• The Strong Yen Characteristics• Conclusion• Reference
  3. 3. Introduction● Recently, the Yen was the highest level the currency has hit.● I think that why the Yen so strong and I want to know that reason.● Here are the research and conclusion on it.
  4. 4. Yen/Dollar Historic Trends● The Yen/Dollar exchange rate has a fluctuating pattern with continuous lower tops.● The Yen is getting stronger than Dollar● The Yen was then relatively very strong before 1996 and after 1996.
  5. 5. Expected the Opposite● The domestic interest rates in Japan are about the lowest in the world and not very attractive to park your money.● Japan has an aging population and this will temper the economic growth in Japan.● Japanese public debt as a percentage of GDP is about twice the size of the U.S. public debt.
  6. 6. Demand for Japanese Assets● Japanese assets coming from partly foreign reserves diversification.● Japanese interest rates have always been the lowest, but when the expectation is that this difference is will become less big.● Thus, The same thing will happen in outside Japan that are expected to become more risky or providing lower returns.
  7. 7. Case of Currency Impact● The initial reaction in the currency markets was a strengthening in the value of the yen versus the U.S. Dollar in the earthquake on March 11.● Thus, Japanese investors would pull their money out of other countries and put it back in Japan. And that’s exactly what did happen.
  8. 8. The Strong Yen Characteristics● It’s a stable currency and a relatively economy that’s not affected so much by global crises.● But, when the yen gets too high, Japanese companies cant sell their goods overseas and this causes major problem for the Japanese economy.
  9. 9. Conclusion● I knew why Japanese Yen so strong alongside of Dollars.● I understand that Japanese Yen might need from the market and Japanese government that fund relief and reconstruction efforts in Japan.
  10. 10. Reference● http://www.stocktrendinvesting.com/blog/ why-japanese-yen-so-strong● http://business.blogs.cnn.com/2011/03/17/ japan%E2%80%99s-in-crisis-why-is-the- yen-strong/● http://japanese.lingualift.com/blog/yen- insanely-high/

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