With the us dollar so low against nearly all currencies why does it continue to do well against the Yen?
I don't understand the strength of the dollar against the yen. How come it does so well against the yen? Is it the fact they have low interest rates in japan? I am making money in the stock market, but am finding that I am making more dollars that are worth less v other currencies. Any opinions on just buying yen and betting they'll appreciate against the dollar or the yen's weakeness some sort of statistical or mathematical imbalance/anamoly. I doubt that...just wondering what the math whizzes think about it.
Investing - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
there are two strategies... when one currency going up and other going down... 1. If one conuntry's economy no good its currency going down....aginst others... 2. If both countries not doing well , it does not make big difference... Not only yen but swiss franc is also weak aginst U.S. At this time, Canada, India, china , european economy is excellent.....so thats why big difference between U.S $...
2 :
The yen has the lowest interest rates, so many global investors borrow in yen (having to pay almost no interest) and invest in other higher-yielding currencies and asset classes -- the so-called "carry trade." Thus, the yen is being sold very heavily around the world. Meanwhile, US Treasuries are still considered by many to be the safest securities in the world, so many investors (including sovereign states) make a nice, safe yield differential in USD/JPY. There are two relevant factors when it comes to currency valuations: interest-rates and purchasing power. Trends persist far longer than most people anticipate, so I wouldn't jump into the yen until it actually reverses. You could be waiting for a while. But I agree, the yen is due for a rebound, and when that happens, you're going to see a nasty fallout in almost all asset classes. I would also say that USD is due for a rebound. A statistical analysis might find the euro to be overvalued, if anything.
3 :
Because they are printing more money than us
