Why is the Japanese yen appreciation?

Japan’s success in 2017 was due to liquidity from its central bank, government spending, and the worldwide demand for the country’s exports. The strengthening of the US dollar and the rising Japanese economy are often cited as reasons for the yen’s appreciation.

Is yen appreciating or depreciating?

Exchange Rate in Japan The Japanese yen (JPY) has been depreciating sharply against the U.S. dollar since Donald Trump’s victory in the 8 November presidential election and, in particular, following the United States Federal Reserve’s decision to raise its benchmark interest rate at the 13–14 December meeting.

Why does the Japanese yen keep rising?

A similar phenomenon occurred again in 2013 when uncertainty around Italian elections caused the yen to rise over 5\% against the euro and 4\% against the dollar … in a single day. Even when Japan was leveled by the Great East Japan earthquake in 2011, the currency somehow managed to rise.

How does the yen’s strength affect M&A in the US?

While the yen’s strength benefited Japanese tourists and companies conducting M&A in the United States, it was disadvantageous for Japanese exporters who wanted to sell their goods to American consumers.

Why did the yen appreciate against the euro in 2013?

Later, in 2010, worries about peripheral European debt led to a 10 percent appreciation against the euro. A similar phenomenon occurred again in 2013 when uncertainty around Italian elections caused the yen to rise over 5\% against the euro and 4\% against the dollar … in a single day.

How has the Plaza Accord affected the Japanese yen?

Since 1995, the Japanese yen has seen a number of violent swings. While none of them were as extensive as the first 10 years following the Plaza Accord, they have wreaked havoc on the mindset of Japanese businessmen and politicians and changed the underlying structure of the country’s economy.