Bonobo
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Wed Mar-16-11 07:19 PM
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The Yen is going up in value! Now 76 yen = 1 dollar! |
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Can someone explain this to me?
I thought it would get weaker, not stronger!
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KeepItReal
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Wed Mar-16-11 07:22 PM
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1. Japanese govt pumped BILLIONS into their market |
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There is an expectation of Japanese companies selling overseas assets also
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suffragette
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Wed Mar-16-11 07:23 PM
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2. I'm so glad to see you |
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I was worried after hearing about the aftershock in your area.
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nadinbrzezinski
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Wed Mar-16-11 07:23 PM
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3. Central Bank pumped close to two billion |
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from what I read.
Good to see you by the way
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notesdev
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Wed Mar-16-11 07:31 PM
Response to Reply #3 |
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Y18 trillion ~= $225 billion
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nadinbrzezinski
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Wed Mar-16-11 07:32 PM
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7. I stopped watching at two |
Bonobo
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Wed Mar-16-11 07:36 PM
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10. More currency in circulation = inflation normally, no? nt |
nadinbrzezinski
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Wed Mar-16-11 08:09 PM
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14. Long term, short term is stabilizes it |
notesdev
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Wed Mar-16-11 07:29 PM
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4. People in Japan need Yen to spend right now |
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Supply and demand... demand for Yen just shot through the roof.
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dipsydoodle
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Wed Mar-16-11 07:31 PM
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6. I had a similar problem |
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trying to understand why it is than when they start rebuilding their GDP will go through the roof. Explanation of your point here. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4774080 :hi:
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FLAprogressive
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Wed Mar-16-11 07:34 PM
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8. Doesn't that mean the dollar is stronger compared to the yen? |
Bonobo
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Wed Mar-16-11 07:35 PM
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Old and In the Way
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Wed Mar-16-11 07:38 PM
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11. Japan is dumping foreign investments, like US Treasuries, to raise |
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capital for their emergency. No surprise that the yen would increase in value as the dollar loses ground.
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Cali_Democrat
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Wed Mar-16-11 07:39 PM
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12. Actually, other currencies are falling even more against the Yen |
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Edited on Wed Mar-16-11 07:50 PM by Cali_Democrat
Look at the AUD/JPY or NZD/JPY.
Three things going on.
1) Money is flowing back into Japan in preparation for cleanup, reconstruction and rebuilding. This is driving up the value of the Yen as demand for Yen increases.
2) People are unwinding carry trades. This is likely as well when you consider the fall of the Australian and New Zealand currencies. Carry trades are when people borrow money in an overseas currency (Yen in this case) because that country has lower interest rates. This makes it cheaper for people to invest in higher yielding assets in other countries. People are now unwinding this. Closing their positions by buying Yen. This is leading to a sharp rise in the Yen.
3) The volatility in world equity markets is leading to flights to safety. Historically, the Yen is considered a safe haven currency and a currency like the euro is not.
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enough
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Wed Mar-16-11 07:44 PM
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13. NHK World TV just said this will hurt Japanese exporters and the economy in general. (nt) |
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http://www.ustream.tv/channel/nhk-world-tvApparently they will be discussing the economic effects.
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DU
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Tue May 28th 2024, 10:23 AM
Response to Original message |