3. Introduction
・Strong yen is the situation that relative value of
yen is higher than a level in world market.
・The converse situation is week yen.
・Strong yen have an affect to economic
environment.
4. History
1971 The first strong yen recession
1975- Change from strong yen to week yen.
1990 The strong yen again.
2010s Max of strong yen value is peak
by Tōhoku earthquake and tsunami.
5. Yen / Dollar Historic Trends
・The unusual period in the last 20 years was in the 1993 –
1996 time frame. The Yen was then relatively very strong.
・The overall trend during the last 20 years in clear; the Yen is
getting stronger against the Dollar.
・It exchange rate has a fluctuating pattern with continuous lower
tops.
6. Expected the opposite
・The domestic interest rates in Japan are about the lowest in the
world and not very attractive to park your money.
・Japan has an aging population and this will temper the economic
growth in Japan compared to the more vibrant demographics in the
U.S..
・Japanese public debt as a percentage of GDP is about twice the
size of the U.S. public debt.
7. Affect
・Strong yen means that it have an effect in the world
market.
・By provision of strong yen depression, preventing to
foreign of company bring economic downturn.
・Strong yen depression create an adverse
result secularly.
8. Japanese export suffers
・Strong yen cause downturn in economy including cut
down gross domestic product and net export.
・By affect of strong yen, Business performance
of exporting company decline.
9. Summary
・ The cause for the strengthening of the Yen is that the Yen
is a currency with net inflows. And more Yen are bought then
that there are Yen sold.
・ The expected monetary policy in the U.S. and the
diversification of foreign reserves in other countries away
from the U.S.
