What factors affect the yen to dollar exchange rate?

1 answers

• Dec 25, 2021 · 3 years ago
  The yen to dollar exchange rate is influenced by a wide range of factors. One factor is the demand for Japanese goods and services. If there is high demand for Japanese products, it can lead to an increase in demand for yen, which can strengthen the yen against the dollar. Another factor is the level of foreign investment in Japan. If there is a high level of foreign investment, it can lead to an increase in demand for yen, which can also strengthen the yen. Additionally, the overall economic health of Japan and the US can impact the exchange rate. If Japan's economy is performing well and the US economy is struggling, it can lead to a strengthening of the yen against the dollar. Finally, market sentiment and investor expectations can also play a role in the exchange rate. If investors believe that the yen will appreciate against the dollar, they may buy yen, which can lead to an increase in the exchange rate.
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