Why is Japanese yen strong?

s1170156

Saki Seino

Contents

Yen & Dollar

Opposite hope

Current money

Trade cash flow

Investment cash flow

Demand of Japanese resource

Conclusion

References

Yen & Dollar

Japanese yen is stronger than the Dollar past 3 years. But we look these historic, it is very natural thing.

So it is not surprised yen’s strong.

Opposite hope

When you compare Japan and America, you are surprised power of the yen.

Comparing these country, Japanese economic status is not better than America.

And Japan has much debt. It is not good thing. But Japanese yen is rising.

Current money

When there are much supply, and there are not demand, the yen become more poor.

When there are much demand, and there are not supply, the yen become more strong.

It is current money theory.

Trade cash flow

Japan has trade surplus, and do export than import.

It is creating strong yen.

But strong currency may be difficult to export.

America has trade deficit.

It is creating poor dollar.

Investment cash flow

Japanese invent require from not Japanese.

For example, in abroad, asset holder buy 5.5 trillion yen from January to July.(It is data from Japanese Ministry of Finance)

Demand of Japanese resource

Hope that printing new yen or new dollar become strong currency.

It will register currency exchange rates.

Many country maybe expect this thing.

Conclusion

Japanese yen is stronger than the Dollar past 3 years.

Japan has trade surplus, and do export than import.

Japanese invent require from not Japanese.

References

Fx-tate

◦ http://fx-rate.net/JPY/

Why is Japanese Yen so high?(blog)

◦ http://ameblo.jp/big-short/entry-10666797148.html

Why is the Japanese Yen Still Rising?

◦ http://www.forexblog.org/2010/10/why-is-the-japanese-yen-still-rising.html