The Japanese yen has strengthened against the U.S. dollar over the past 20 years. This is due to several factors, including lower interest rates in Japan compared to other countries, a large aging population, and Japan running a trade surplus where it exports more than it imports. When demand for the yen is high due to exports and investments into Japan, it causes the yen to strengthen as there is more demand than supply for the currency. Conversely, when Japan runs a trade deficit or its investments abroad increase the yen supply, it causes the currency to weaken. Due to Japan's ongoing trade surplus, this has kept the yen strong compared to the U.S. dollar.
1. Why is the Japanese Yen strong?
s1160235 Yasuhiro Yamamoto
2. Summary
Now, the question increase such as
“Why is the Japanese Yen so strong?”
This slides will show you the reasons.
3. Historic Trends
It is clear that the Yen is getting stronger than
Dollar while the last 20 years.
4. Japanese stuation
Japanese domestic interest rates are lower than
other country in the world.
There are so many old people in Japan.
GDP is about twice the size of U.S.
5. How the Yen become strong?
If the Yen was not to be needed in othr words,
there is no demand, Yen is become to weak.
On the other hands, if there is demand and less
supply of Yen, Yen become strong.
6. Trade cash flow
Exports from Japan bring demand for Yen.
Because the Japanese goods are sold.
Imports into Japan create supply of for Yen.
7. Investment cash flow
Investments from outside Japan is bring
demand
for the Yen.
This is connect to that the Yen is strong when
there is more demand.
Investments from Japanese investors outside
Japan bring supply.
This is connect to that the Yen is weak when
there is less demand.
8. Trade and invest of Japan and U.S
Japan is doing the trade surplus and exporting
more than importing.
This is important to keep the strong.
U.S is importing more than exporting.
This weakens the U.S.
9. Conclusion
Why the Yen is so strong?
Because Yen is currency with net.
Thus, the more Yen are bougt that there are
Yen sold.