Why is the Japanese Yen so Strong s1180131 Yutaro Ono s1180138 Takuya Saito s1180139 Kento Sagi
History for Strong Yen● For a general tendency for the past 20 years, the yen becomes strong for the dollar.● The reinforcement as of a thing of strong yen after the last top of the chart has been already made after mid- 2007.● Therefore, I am good and am correct with the historic viewpoint of both for the past 3 years like the past 20 years when it becomes the strong yen.● The yen breaks through a wall of the 80 yen against- dollar for 76.25 yen at the peak and.
Expected the Opposite for Strong Yen● The person may expect that the country having healthy economy gets the currency which is strong in the right when I do not see the Japanese economic conditions being good in comparison with the United States. The domestic interest rate of Japan does not feature at all that I park your money if the world is lowest. Japan has low birthrate and aging, and, for example, this will moderate economic growth of Japan in comparison with population brighter than the United States.
Cause for the Strong Yen● A trade surplus of Japan.● Low returns for the investment in world other areas.● It is necessary for the Japanese major company to regain boatloads of the yen from the overseas market for payment of the line compensation for damages by an earthquake and a tsunami● In the uncertain world, Japan and the yen are seen as a safer and safer refuge.
Currency Theory● When there is demand to relatively much supply and yen too much, the yen becomes weak. When there is fewer it, and there is supply, I strengthen demand for yen.● Trade cash · Flow Japan has a trade surplus and exports it than much import. Therefore, I increase because demand for yen buys a Japanese product.● Investment cash · Flow The Japanese assets seem to have in particular strong demand from the non-Japanese-investors for money market instruments. Therefore, demand for yen increases from a non-Japanese.
Demand for Japanese Assets● Because demand for yen increase faces the United States and the euro, credit or a sovereign debt crisis and the dollar of the United States and a decrease in euro from diversification of the foreign reserve.● When they sell other assets, as for them, the investors look for a temporary parking lot for their money. The very low interest rate may be seen to the financial products with a tendency to reinforcement for the United States Department of the Treasury and the yen very attractively afterwards in a yen short term.
Demand for Japanese Assets● I cannot know whether it is pleased with the Federal Reserve Board (FRB) more to carry out the monetary easing that is more active than a bank of Japan either.● The investors used it before having borrowed the yen at a very low interest rate to invest it in other countries where a return was high.
Problems for Strong Yen● The strong yen reduces the competitiveness of the Japanese product in comparison with a rival.● As for the profit that I got abroad when a Japanese company was returned to the house called "foreign exchange loss", there is value like that. As for all yen that the dollar fell, the operating income of Toyota was less than 2%.● Economy of Japan is dug out over time. It was thought that half or more of the Japanese major company moved some overseas factories and offices.
Conclusion● The Japanese economic conditions are not good at all.● It is trusted in the United States and the euro, Japan and an economic crisis of the yen by very non- Japanese-investors.● The currency is balance of supply and demand in the short term.● The Japanese assets have the demand from various sides.● The strong yen has a crushing result for particularly various problems and export.
References● The stock trend investment is why and is too strong Japanese Yen http://www.stocktrendinvesting.com/blog/why- japanese-yen-so-strong● As for the BBC broadcast, the strong yen is a problem for Japanese economy http://www.bbc.co.uk/news/business-14526293● TIME, problem of the strong yen in Japan, http://www.time.com/time/business/article/0,8599,1722557 ,00.html● In the situation critical in CNN Japan: Why is the yen strong? http://business.blogs.cnn.com/2011/03/17/japan%E2%80%99s -in-crisis- why-is-the-yen-strong/