Why is the Japanese Yen so low in value compared to other bigger currencies in the world?

Question

Using May 06 rates:
SGD1 = USD1.58
SGD1 = GBP2.94
SGD1 = YEN0.014

Answer 1

It isn't "low in value" if you look at PPP.

Answer 2

Ok not that Im even close to be an economist, but the best I see is that Japan while being a prosperous country. With a large industrial complex in place. Is also a country with no natural resources. So the manufacturing industry. The energy needed to power Japan, and every other product made in Japan is completely dependent on foreign goods. The import of raw materials and energy sources such as oil are subject to volatile world markets. With Japan not able to compete or contribute to those markets, they are forced to pay whatever the price may be. This is especially bad for Japan in the oil markets, as any raise in prices is severe in Japan where gas and oil are at all time highs. The Import of materials greatly outweighs the export of Japanese goods. So the Yen is then devalued worldwide.

Answer 3

There is no "cent" or "penny" in Japanese Yen today.

100 yen = 1 big yen or 100 small yen = like 1 dolller or 100 cents.
100 yen is close to the US$1

so, you can imagine as
SGD1 = YEN$0.7
(but actually this is wrong. You need to write the rate as
SGD1 = JP 70 Yen)

Answer 4

The absolute exchange rate between two currencies doesn't mean anything since the units are arbitrary. What's more important is the change in the exchange rate over time.

Answer 5

currencies fluctuate constantly. the japanese yen is particularly sensitive to oil prices, because japan imports all of its oil. but if oil prices stabilize, the yen should bounce back.

Answer 6

economics...everything is based against the US dollar

Answer 7

isnt it higher value then the us dollar?

Answer 8

Go to this link: http://www.x-rates.com/calculator.html#