Submit the Slideshare Assignment for Week 11

1. Why is the Japanese
Yen so strong?
by s1190178

2. Contents
● Japanese Yen Becomes so Strong
● Yen / Dollar Historic Trends
● Expected The Opposite
● Currency Theory
● Summary
● References

3. Japanese Yen Becomes so Strong
The Japanese Yen reached recently a
15-year high against the Dollar. And the
question of reason that Yen is now so
strong against the US Dollar is asked
repeatedly for long period.

4. Japanese Yen Becomes so Strong
The reason is the following combinations:
- The strengthening its trend
- The Japanese trade surplus
- The expectation of monetary policy in the U.S.
- The diversification of foreign reserves in other
countries away from the U.S. Dollar and Euro

5. Yen / Dollar Historic Trends
● The overall trend of the Yen is getting
stronger against the Dollar during the
last 20 years.
● The exchange of Yen and Dollar rate
has a fluctuating pattern with
continuous lower and tops.

6. Yen / Dollar Historic Trends
● In this way, the strengthening of the
Yen is that it fits well with the historic
perspective of both the last 20 years as
well as the last 3 years.
● Thus, there are no big surprises that
the Yen is continuing this trend.

7. Expected The Opposite
● The economic situation of Japan doesn't
seem good compared to the U.S.. So one may
expect countries with a healthier economy to
get a stronger currency.
● The domestic interest rates in Japan are one
of the lowest interest rate in the world and it is
not very attractive.

8. Currency Theory
It is all about demand and supply.
When there is relatively more supply and less
demand for Yen’s, the Yen will weaken. And
when there is more demand and less supply of
Yen’s, the Yen will strengthen.
The strength of a currency is changed by trade
and current accounts. These are two sides of
the same coin.

9. Summary
Now there is a trend that the Japanese
Yen is so strong against the U.S. Dollar.
But it is not big surprise. Because the
exchange of Yen and Dollar rate has a
fluctuating pattern, the strengthening of
the Yen is that it fits well with the historic
perspective of both the last 20 years as
well as the last 3 years.

10. References
● Why is the Japanese Yen so Strong | Stock
Trend Investing Guide -http://www.
stocktrendinvesting.com/blog/why-japanese-yen-
so-strong
● Japanese yen - Wikipedia, the free encyclopedia
-http://en.wikipedia.org/wiki/Japanese_yen
● Dollar - Wikipedia, the free encyclopedia -http:
//en.wikipedia.org/wiki/Dollar