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? s1180043 Mitsuru Abe
  2. 2.  Why is the Japanese Yen so strong.  Yen is stronger than Dollar  Heavy debt  The trade cash flow  The investment cash flow  Investment in the Japanese economy  Summary Outline
  3. 3.  The cause for the strengthening of the Yen is that the Yen is a currency with net inflows; more Yen are bought then that there are Yen sold. Why is the Japanese Yen so strong.
  4. 4.  Yen is stronger than the dollar If you look at the data of the past 20 years. Yen is what fit well with the historical perspective of both over the past three years as well as the past 20 years. Therefore, there is no big surprise here the yen has continued this trend at this time. Yen is stronger than Dollar
  5. 5.  The power of money in the country will become more intense economic strength becomes strong to think simply. Japan is also becoming stronger yen. However, there is a large amount of debt in Japan. Amount of Japan's public debt is twice of America. Heavy debt
  6. 6.  It is exported than imported Japan has a trade surplus. This keeps the strong state the currency. There is a possibility that imports will increase in the long term reduce the exports strengthening currency. However, it is possible to strengthen itself by reducing the supply of yen needed to import in the short term. America is importing more than you export it. Trade deficit of the United States to weaken the U.S. currency. The trade cash flow
  7. 7.  Assets of Japan seems to be there is a strong demand from foreign investors for money market instruments. Demand for assets other than Japan is definitely more. There is also a fact that recommends the Japan government bonds for decades yen despite low levels worldwide depositors of Japan. The investment cash flow
  8. 8.  Difference between the interest rates of Japan and the United States will have the impact on the exchange rate. Japanese interest rates were the lowest always. But when raising the interest rates for the foreseeable future is not expected, the United States expects the difference is going to be big. , Carry trade will strengthen the yen further. The same thing happens when to become investment outside Japan to provide benefits or lower risk than is expected. Investment in the Japanese economy
  9. 9.  Therefore from that circle, the currency and net inflows, cause of the yen has been caused by investors who are buying the yen. The reason for this is that you have diversification of foreign exchange reserves in the United States and other countries strengthening trend itself away from the United States, Japan's trade surplus, the rest of the world, expectations and monetary policy in the United States. It is not the thing yen can not be expected in a historical perspective. Summary
  10. 10.  http://www.stocktrendinvesting.com/blog/why- japanese-yen-so-strong  http://www.marketwatch.com/story/japan-stocks- slide-while-australia-trades-up-2013-04-01  http://forum.gaijinpot.com/showthread.php?116799- The-Japanese-yen-why-is-it-so-strong Reference