How does the fluctuation of digital currencies affect the exchange rate between yen and dollar?

3 answers

• Mar 22, 2022 · 3 years ago
  The fluctuation of digital currencies can have a significant impact on the exchange rate between the yen and the dollar. When digital currencies experience a surge in value, investors may be more inclined to convert their yen into digital currencies, leading to a decrease in demand for yen and an increase in demand for dollars. This increased demand for dollars can cause the exchange rate to shift in favor of the dollar, resulting in a stronger dollar compared to the yen.
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• Mar 22, 2022 · 3 years ago
  Digital currencies, such as Bitcoin and Ethereum, have become increasingly popular in recent years. As their value fluctuates, it can affect the exchange rate between the yen and the dollar. When digital currencies experience a decline in value, investors may choose to convert their digital currencies back into yen, leading to an increase in demand for yen and a decrease in demand for dollars. This increased demand for yen can cause the exchange rate to shift in favor of the yen, resulting in a weaker dollar compared to the yen.
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• Mar 22, 2022 · 3 years ago
  As an expert in the field, I can say that the fluctuation of digital currencies does have an impact on the exchange rate between the yen and the dollar. At BYDFi, we closely monitor the market trends and analyze the impact of digital currency fluctuations on various currency pairs. While the exact impact can vary depending on the specific digital currencies involved and market conditions, it is clear that digital currency fluctuations can influence the exchange rate between the yen and the dollar.
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