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Why the yen rose despite calamity?
AsiaOne ^ | 3/15/11 | Mario Sant Singh

Posted on 03/18/2011 3:27:45 AM PDT by 1010RD

LAST Friday, Mother Nature dealt Japan a cruel blow in the form of a 9-magnitude earthquake along the north-east region of Sendai.

The earthquake triggered a massive 10m-high tsunami which has added to the colossal damage. Now the country is facing the threat of a possible meltdown of several nuclear plants.

As Nobel prize-winning economist Nouriel Roubini has put it, the disaster came at the "worst time" as Japan struggles to reduce its massive debt.

However, in the first day of trading after the disaster, the country's currency actually strengthened to 80.60 yen (S$1.2464) against the US dollar - less than 100 pips from its all-time low of 79.75 recorded in 1995.

There are two reasons to explain the yen's strengthening:

Low interest rate

Fund repatriation

(Excerpt) Read more at business.asiaone.com ...


TOPICS:
KEYWORDS: blog; currency; japan; yen; yencurrency
Here's a concise explanation of why the Yen rose.

There's more at the site.

1 posted on 03/18/2011 3:27:48 AM PDT by 1010RD
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To: 1010RD

This morning I hear that the G 7 has decided to lower the value of the yen to make exports more attractive. This will help the country’s economy in the short term.


2 posted on 03/18/2011 4:14:09 AM PDT by Carley (WISCONSIN STREET NO DIFFERENT THAN THE ARAB STREET. UGLY AND VIOLENT)
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To: 1010RD
Several nuclear power plants?????

no need to read any past that point, convinced me they did not know much.

3 posted on 03/18/2011 4:25:53 AM PDT by org.whodat
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To: org.whodat

I’d forgotten just how smart you are.


4 posted on 03/18/2011 4:30:40 AM PDT by 1010RD (First, Do No Harm)
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To: Carley

Yes and the response is reasonable. The disaster in Japan is enormous and has rattled the people and the markets.


5 posted on 03/18/2011 5:26:55 AM PDT by 1010RD (First, Do No Harm)
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To: 1010RD
After a massive earthquake and a nuclear meltdown, Japan's economy is on the ropes. Enter the likes of Soros to manipulate the currency. If the Yen rises, exports fall, putting more pressure on a shocked economy. Far be it from me to blame the likes of Soros...
6 posted on 03/18/2011 5:54:49 AM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: 1010RD

G 7 acting while the empty suit is talking brackets.


7 posted on 03/18/2011 6:24:45 AM PDT by Carley (WISCONSIN STREET NO DIFFERENT THAN THE ARAB STREET. UGLY AND VIOLENT)
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To: Carley

Obama’s slow melt-down seems unbelievable. He was an empty suit to start with, so what are his political masters at?


8 posted on 03/18/2011 6:45:38 AM PDT by 1010RD (First, Do No Harm)
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To: April Lexington

There’s a lot of money to be made from disasters, natural and man-made.


9 posted on 03/18/2011 6:46:15 AM PDT by 1010RD (First, Do No Harm)
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To: 1010RD

Once the pansy signalled weakness the world’s despots took notice.

BRING BACK THE COYBOY!!!!!


10 posted on 03/18/2011 6:49:52 AM PDT by Carley (WISCONSIN STREET NO DIFFERENT THAN THE ARAB STREET. UGLY AND VIOLENT)
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To: Carley

Every action of Obama on the world stage projects his moves. He’s obvious. Who gains from that?


11 posted on 03/18/2011 6:52:33 AM PDT by 1010RD (First, Do No Harm)
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