why the USD keep on rising againts the JPY althought the USD drop againt sterling,Euro and major Curencies?

Question

Is the Japanese Yen got some problem and which is even weaker than the usd

Answer 1

Japan's economic recovery has a ways yet to go, so interest rates remain low. Low interest rates means that investment in other currencies is more profitable, so traders continue to sell the yen. The most recent news indicates that the dollar did rise against the yen, but that it failed to break through resistance at the 120 range. In anticipation of some upcoming reports here in the US, traders are taking advantage of the yens relative weakness. Once the CPI and housing numbers come out, marketeers will have a better idea of where the dollar will be relative to the yen.

While the dollar did rise against the yen, other currencies fell slightly, such as the euro. Much of the confidence in the euro's current value might be mere wishful thinking, with some analysts stating that the euro is slightly overvalued. That being said, however, the euro is on a bull run against the dollar.

The sterling did rise to the 2.000 mark in trading, but whether that's going to continue is a question only the market can determine. Coupled with the slowdown in the US economy and neutral interest rates here, favourable economic news in the UK fueled an increase in pound buying. If UK interest rates rise in anticipation of inflation, we could see the sterling British pound hover above 2.000 for quite a while.

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Answer 2

The Japanese economy has been in recession since 1990, It is just now starting to show some life, The interest rates for loans are 0.5% (1/2 0f a percent.) Big investors, borrow money at 0.5% in japan and buy dollars to invest elsewhere, that puts pressure down on the yen, and pressure up on USD compared to yen....you borrow in yen, convert to USD (sell yen) to buy investments in US.

Answer 3

This has plenty to do with yield benefit. modern-day yield differential between currencies and expectancies of destiny expenditures. With the present records out of the U. S., which isn't so warm, so value upward thrust expectancies has been tone down particularly plenty. i've got confidence the usd will recuperate sooner or later when you consider that a vulnerable forex has a tendency to help the economic gadget one way or yet another.

Answer 4

Interest rates in Japan are very low and unlikely to rise soon. Investors would rather sell Yen in order to invest elsewhere.

Answer 5

That is like asking why seventh graders beat up on sixth graders, when there are eight graders who beat up on seventh graders.

Just because someone is stronger than you are doesn't mean you aren't stronger than someone else.