II. Yen carry trade
II. 1. What is Yen carry trade?
II. 1. (1) Typical meaning
The typical meaning is “borrowing at low interest rates in yen and using the loan to buy higher yielding assets elsewhere.” During the past decade, the trade has become a “staple” for many investors. One of the most popular forms of the strategy exploits the gap between US and Japanese yields. Anyone
I. Introduction of currency wars
War using the exchange rate policy has been sustainable like Europe’s exchange rate policy in the early 20th century and Japan’s exchange rate policy after World War II. Recently, Economic purposes such as restoring slowdown of economy due to financial crisis and recovery of trade deficit are combined with political purpose and retaliatory currency manipul
I. Environment Analysis
Introduction
Lately, South Korea's cosmetic companies are actively entering Japanese market. In particular, low-priced brand companies entering are remarkable. Continuing the long-term recession, Japanese consumers find inexpensive cosmetics. Through this period, cosmetics of South Korea draw popular through low price and good quality. Celebrity publicity is also inf
in order to pay back the loan, would be altered.
Bubble
Inflow of foreign capital increasing of the price level, a stock price, a property price A bubble occurred, worsening economy
Excessively Appreciation
Inflow of foreign capital appreciation of exchange rate worsening competitiveness of export current account worse economy worse
Yen falls as Japan intervenes in currency markets
In a landmark move to shore up the sagging exports sector, Japanese government intervened in the currency market for the first time since 2004 to stem the rise of yen.
Addressing a press conference in the morning in Tokyo, after the government and the Bank of Japan (BoJ) stepped into the market to sell yen and buy dollars, Japanese Finance