Japan has just had one of the worst weeks in its history. Why then did the dollar just drop to a record low versus the yen? Does this make sense? Am I missing something?
The Bank of Japan, has been spending billions to save the Yen this week. It has succeeded so far. I pray the Japanese firefighters can do the same with the melting reactors.
I'm definately with you on those brave men who have already given their lives so unselfishly to try to save the rest of the people from futher damages. If or when something like that happens here can you see the American people giving away food and trying to provide whatever comfort to their neighbor that they can, and they wonder why there is no looting over there.
Much was due to bringing yen back to Japan for internal use, and buying yen by insurance companies with liabilities payable in yen ( according to the Forex boards). Many expect it to be a relatively short termed situation.IMO. Jim
Yeah, basically it's because of speculation and what Desert said. It's also affecting the US markets... the Forex is going nuts the past few days.
Educate me please..I read the following and am not sure of how to understand.. "..A country with an export driven economy can't afford a currency gaining 2% a day.." (regarding repatriation of the yen) It's so confusing sometimes, economics.
Well its good to see that japan is not spending the 892 Billion in US treasuries they have instead, this would only make the dollar drop more.
Interesting stuff.... I have a bunch of Yen from a friend, modern ones, that I plan on cashing in for MYR on my next flight to Asia... I just looked it up and my 6000 Yen is worth around $75 USD, last time I checked, a while back, it was worth closer to $60 or so I think if I remember correctly. Not always easy cashing them in though since they are all coins, 6x 500 Yen coins( I like the 500 yen coins, they are cool looking and pretty.) and then 3000 yen in 100 yen coins.
I heard on the news the 80 yen to the dollar is a kind of psychological bench mark that when the yen gets below the 80 level, computer trading kicks in automatically.
The dollar is so spread out over asia and everywhere else that it is susceptible, sometimes moreso than the local currencies, to just about everything. The dollar has been on an inverse 1to1 with gold and for so long was effectively an inverse proxy for gold that now things that would effect the price of gold, such as natural disasters, give it a hit.
I found this article on Yahoo news that was pretty good. The interview with Daniel Gross is especially interesting. He is actually explaining the reason for the strength in the yen in the video. http://finance.yahoo.com/news/Japan-Economy-What-You-Need-dg-4672170.html?x=0
Yen Interesting stuff. Look how pretty these two different modern 500 Yen coins are, I am saving 4 of this type of 500 yen coin for my collection, as well as some nice 50 and 100 yen coins, and exchanging the rest.... the modern 50 and 100 yen coins are also quite beautiful, not enough room for pics to show the design of them all though..... I also include a pic of a 1958 50 yen further down(4th photo from the top), it was a gift from a friend, very pretty... and here (the third photo, obviously ) is a pile of around 6000 yen in coins. All in 500, 100 and a couple 50 yen coins in there.....might be more than 6000 yen total. The dates on these coins shown in the pile go back to the beginning of the design style of the 100 yen shown. and the last pic is of my favorite Japanese coin in my collectio currently, it is silver, so not worth it's face value, it's a 1958 100 yen. I like the bird... goes nice with the 1958 50 yen, even though the 1958 50 yen is not silver.
Outside of the Obans, meiji, taisho and early showa coins. Here is a neat Japanese silver coin from 1964 Olypics.
