ManusJustus said:
A lot of ignorant people responded, so this goes for all of you. The Yen is at a 15 year high because their economy is doing better than ours. The value of currency is dependent on the the percieved value of a country's economy, or more specificaly the percieved ability for a country to pay back its debt. It should be obvious that increased value in currency increases exports and decreases imports. When a country's currency value increases, goods produced in that country increase in cost in other markets, decreasing the demand for that good. |
Thank you for your kind words ;) There is a problem with your reasoning. Read back your last paragraph, it doesn't make any sense. If your currency is stronger, it decreases exports, because it costs more to the weaker currency owners. It's simple.
