Cryptocurrency Q&A
Why is yen so weak?
Why is yen so weak?
Michele
Mon Oct 21 2024
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5 answers
1135
I've been noticing that the yen has been really weak lately. I'm wondering what factors are causing this decline in the yen's value. Is it related to the economic situation in Japan or are there other global factors influencing it?
5 answers
HanRiverVision
Wed Oct 23 2024
This low-interest environment in Japan contrasts sharply with the Federal Reserve's stance in the US, where officials have maintained the benchmark federal funds rate within a range of 5.25% to 5.5%. This discrepancy creates an incentive for capital flows, as investors seek higher yields.
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EchoSoulQuantum
Wed Oct 23 2024
The gap in interest rates can lead to currency fluctuations, as investors shift their funds from lower-yielding currencies like the Japanese yen to higher-yielding ones like the US dollar. This, in turn, can impact exchange rates and international trade.
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Eleonora
Wed Oct 23 2024
The Japanese government's decision to keep interest rates low is aimed at stimulating economic growth and combating deflation. However, it also attracts investors looking to capitalize on the interest rate differential, contributing to the current global financial landscape.
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MountFujiMysticalView
Wed Oct 23 2024
The significant disparity in interest rates between Japan and the United States is a primary driver behind certain economic phenomena. Japan's newly implemented policy rate stands as the lowest among developed nations, hovering within a narrow band of 0% to 0.1%.
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CryptoEmpireGuard
Wed Oct 23 2024
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