Why is the japanese yen so strong
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The Japanese yen has strengthened against the US dollar over the past 20 years. The yen grows stronger when demand for yens is high, such as when exports from Japan create demand for yen to purchase Japanese goods, or when foreign investment in Japanese assets increases demand. Conversely, the yen weakens when supply of yens is high, such as when imports to Japan increase the supply of yen. The yen's strengthening reflects net currency inflows into Japan through trade and investment.
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Why is the japanese yen so strong
- 1. Why is the Japanese Yen so Strong? s1160222 Junnosuke Yanai
- 2. Back ground. The Yen reached a 15-year high against the Dollar in these days. What is going on between Yen and Dollar and what our research and our conclusions on why the Yen is so strong.
- 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. Compare Japan to U.S. When comparing Japan with the U.S, people were surprised by the strengthening of the Japanese Yen. Japanese economic situation compared to the U.S doesn't look that one may expect countries with a healthier economy to get a stronger currency.
- 5. Currency of Japan theory. The Yen will weaken, if there is relatively more supply and less demand for Yen's. And the Yen will strengthen if there is more demand and less supply of Yen's.
- 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. 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. Summary. Strengthening of the yen of cause is that the yen is a currency with net inflows; more yen are bought then that there are yen sold.
- 9. Reason of summary. This is the combobulation of the strengthening trend the low return on investments in the rest of the world, the expected monetary policy in the U.S, and the diversification of foreign reserves in other countries away from the U.S. Dollar and Euro.
- 11. Why is the Japanese Yen so Strong? s1160222 Junnosuke Yanai
- 12. Back ground. The Yen reached a 15-year high against the Dollar in these days. What is going on between Yen and Dollar and what our research and our conclusions on why the Yen is so strong.
- 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. Compare Japan to U.S. When comparing Japan with the U.S, people were surprised by the strengthening of the Japanese Yen. Japanese economic situation compared to the U.S doesn't look that one may expect countries with a healthier economy to get a stronger currency.
- 15. Currency of Japan theory. The Yen will weaken, if there is relatively more supply and less demand for Yen's. And the Yen will strengthen if there is more demand and less supply of Yen's.
- 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. 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. Summary. Strengthening of the yen of cause is that the yen is a currency with net inflows; more yen are bought then that there are yen sold.
- 19. Reason of summary. This is the combobulation of the strengthening trend the low return on investments in the rest of the world, the expected monetary policy in the U.S, and the diversification of foreign reserves in other countries away from the U.S. Dollar and Euro.