2. Cause of the strong yen
the cause for the strengthening of the Yen
is that the Yen is a currency with net inflows;
more Yen are bought then that there are Yen
sold.
The reason of strengthening Yen is that
Yen is the currency by the net inflow,
More Yen is bought and it over there is
sold Yen.
3. Tendency to reinforcement
The reason of this is a combination of
tendency to reinforcement itself, and and a
Japanese is the euro with low profit of the
investment in diversification of the foreign
reserve of other countries which left the
world of the American remainder, the
prospective monetary policy and U.S. dollar
for a trade surplus.
4. Yen / Dollar Historic Trends 1
General tendency between the lasts letting
you feel fine at 20 years inside, Yen becomes
stronger for a dollar.
The Yen/ dollar exchange rate has a pattern
fluctuating at the top under the
continuation, It has already taken place from
mid-2007 to strengthen Yen in a current
from the last top in a chart.
5. Yen / Dollar Historic Trends 2
In this way, the reinforcement of Yen is good
for these 20 years and historic prospects in
these 3 years and is anything correct. In this
way, it is not right here not to hang the big
thought either when Yen continues this
tendency now.
6. Yen / Dollar Historic Trends 3
During the strange period just as a memo
in these 20 years, it was 1993 – 1996 time
frames. Then Yen was relatively very strong.
I am interested to hear explanation to cover
the period.
7. Currency theory
We will refer to continuous reinforcement of
the dollar vs. Japanese yen. Why is it?In
brief, it is all about supply and demand.
When relatively much supply and Japanese
yen remain, and there is demand, Japanese
yen is weakened. When there is supply less
than more demand and Japanese yen, I will
strengthen Japanese yen.
8. Currency theory 2
Reinforcement Yen means increase in
demand for strong yen in comparison with
relatively few power supplies (I sell one of
Japanese yen and get other currencies in
return) in this way.
The strength of the currency trades · It is
driven by balance of current account. These
are one and indivisible.
9. Abstract
aThe dollar and the euro which are a
combination of returns without enough
investment in diversification of the foreign
reserve in a world remaining part, American
expectation monetary policy and other
countries as for tendency to reinforcement
in itself, the trade surplus of Japan as for
this reason apart from the United States. At
the historic point of view, the strong yen is
not a new and unanticipated thing.
