1. Why is the Japanese Yen strong?
S1150091
Tsutomu Sakai
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 situation
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. Why 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.
