2. Contents
•Actual Condition of Yen
•Why is the Yes so strong ?
•Yen/Dollar Historic Trends
•Expected the Opposite
•Currency Theory
•Japan's Trade and investment Cash Flow
•Demand for Japanese Assets
•My conclusion
3. Actual Condition of Yen
・Yen is stronger than dollar recently a 15-year.
Therefore, The competing power of export
goods and earning power are decrease.
・Strong yen is causing decrease of GDP and
downturn of business conditions.
4. Why is the Yen so strong?
・The cause for the strong yen is that currency
is net inflows.
・Profit of low investment in rest of the world
sector.
・Japan expect monetary policy in the US.
5. Yen/Dollar Historic Trends
・During the last 20 years in clear, the yen is
stronger than dollar.
・An exchange rate of Yen and dollar has
fluctuation pattern. Current yen/dollar trends fit
past fluctuation pattern.
6. Expected the Opposite
・The domestic interest rates in japan is the
lowest in the world.
・Aging population of Japan attenuate economic
growth compare to U.S.
・Public debt of Japan is twice as many as U.S.
7. Currency Theory
・A weak yen : When more supply and less
demand.
・A strong yen: When more demand and less
supply.
Now, Japan is more demand and less supply.
So, a strong yen.
8. Japan's Trade and
Investment Cash Flow
・Japan is exporting more than importing and
the trade income is surplus. But this cause a
strong yen.
・To mend a strong yen, Japan should decrease
export and increase import.
・Japanese assets is popular from foreign
investor to market instrument.
9. Demand for Japanese
Assets
・Foreign reserves diversification cause a
strong yen.
・Japanese domestic interest is the lowest in
the world.
・U.S. Federal Reserve conduct more active
monetary easing than Japanese bank.
10. My conclusion
・Japan has a strong yen now. Japanese trade
is more export and less import. So, Japan has
a strong yen. A statesman have to solve this
problem. Japanese domestic interest is the
lowest in the world. A statesman consider the
problem but, cannot solve this problem.
