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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? s1160222 Junnosuke Yanai
  2. 2. Back ground.The Yen reached a 15-year highagainst the Dollar in these days. Whatis going on between Yen and Dollarand what our research and ourconclusions on why the Yen is sostrong.
  3. 3. Yen and Dollar history and trends.* The overall trend during the last 20 years in clear. The Yen become stronger against the Dollar.* The Yen / Dollar exchange rate has a fluctuating pattern with continuous lower tops.
  4. 4. Compare Japan to U.S.When comparing Japan with the U.S,people were surprised by thestrengthening of the Japanese Yen.Japanese economic situationcompared to the U.S doesnt lookthat one may expect countries with ahealthier economy to get a strongercurrency.
  5. 5. Currency of Japan theory.The Yen will weaken, if there isrelatively more supply and lessdemand for Yens. And the Yen willstrengthen if there is more demandand less supply of Yens.
  6. 6. These has two side as same coin. 1, The trade cash flow. * The exports from Japan create demand for Yen to buy the Japanese goods. * The imports into Japan create supply of Yen to buy other import goods..
  7. 7. 2, The investment cash flow.* If assets that investments from outside japan are more in demand, the price become going up and the Yen getting even stronger.* When there is less demand for assets that investments from Japan the price in Yen become going down and the Yen would strengthen.
  8. 8. Summary.Strengthening of the yen of cause isthat the yen is a currency with netinflows; more yen are bought thenthat there are yen sold.
  9. 9. Reason of summary.This is the combobulation of thestrengthening trend the low return oninvestments in the rest of the world,the expected monetary policy in theU.S, and the diversification of foreignreserves in other countries away fromthe U.S. Dollar and Euro.
  10. 10. Reference.http://www.stocktrendinvesting.com/blog/why-japanese-yen-so-stronghttp://www.hirataishu-asian.jp/0002.htmlhttp://±ß¹â.entamez.jp/xn--u9j290hcobh9ew21j.html
  11. 11. Why is the Japanese Yen so Strong? s1160222 Junnosuke Yanai
  12. 12. Back ground.The Yen reached a 15-year highagainst the Dollar in these days. Whatis going on between Yen and Dollarand what our research and ourconclusions on why the Yen is sostrong.
  13. 13. Yen and Dollar history and trends.* The overall trend during the last 20 years in clear. The Yen become stronger against the Dollar.* The Yen / Dollar exchange rate has a fluctuating pattern with continuous lower tops.
  14. 14. Compare Japan to U.S.When comparing Japan with the U.S,people were surprised by thestrengthening of the Japanese Yen.Japanese economic situationcompared to the U.S doesnt lookthat one may expect countries with ahealthier economy to get a strongercurrency.
  15. 15. Currency of Japan theory.The Yen will weaken, if there isrelatively more supply and lessdemand for Yens. And the Yen willstrengthen if there is more demandand less supply of Yens.
  16. 16. These has two side as same coin. 1, The trade cash flow. * The exports from Japan create demand for Yen to buy the Japanese goods. * The imports into Japan create supply of Yen to buy other import goods..
  17. 17. 2, The investment cash flow.* If assets that investments from outside japan are more in demand, the price become going up and the Yen getting even stronger.* When there is less demand for assets that investments from Japan the price in Yen become going down and the Yen would strengthen.
  18. 18. Summary.Strengthening of the yen of cause isthat the yen is a currency with netinflows; more yen are bought thenthat there are yen sold.
  19. 19. Reason of summary.This is the combobulation of thestrengthening trend the low return oninvestments in the rest of the world,the expected monetary policy in theU.S, and the diversification of foreignreserves in other countries away fromthe U.S. Dollar and Euro.
  20. 20. Reference.http://www.stocktrendinvesting.com/blog/why-japanese-yen-so-stronghttp://www.hirataishu-asian.jp/0002.htmlhttp://±ß¹â.entamez.jp/xn--u9j290hcobh9ew21j.html

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