BAD news for ps3 & wii - YEN hits 15 year high

[ManusJustus]

Kynes said:

ManusJustus said:

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.

When I explained it in the second sentence thats what I said, but I got my three increases and decreases mixed up.  It should read:

It should be obvious that increased value in currency decreases exports and increases 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.