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Down to around 162 today.

Good time to buy from the UK.

Not a good time to visit Japan!

Wow, remember it was about 210 just before summer when I sent some money back. Boy do I wish I would have waited!

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Okay I am not the smartest person on the block so clapI need to now about this buying different currencies works. If I buy Pounds with AUS dollar I am only getting 41pound to our dollar. What is the point of buying it and then coverting it to Yen?? clap

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Originally Posted By: RobBright
have just done that myself muika - worried though as at this rate it KEEPS dropping and when will it stop?

The yen sucks. People only want it when everything else sucks more. When things straighten out, everyone will move their money out of yen. But when will that happen? Thursday? Rag-Doll, Mr. Wiggles? Anyone?
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Yen has gone from 250 to 158 vs. the GBP in abuot 12 months.

 

I just calculated my salary in GBP using todays exchange rate, I am now feeling kind of rich. I just need to save every last yen, send it all home, and hope the GBP bounces back one day.

 

But what is going on? Strong yen is going to cause havoc here with the manufacturers right? Future seems a little worrying right now...

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Fingers crossed the pound keeps falling until at least next Friday when I get paid and can send some money home!!!

 

Lets Yen!!

 

BTW I reckon you mean that you get 41 pence for 1 AUD.

 

If you were getting 41 pounds for 1 AUD I'd be asking you to buy for me too!!

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Originally Posted By: bobby12
Yen has gone from 250 to 158 vs. the GBP in abuot 12 months.

I just calculated my salary in GBP using todays exchange rate, I am now feeling kind of rich. I just need to save every last yen, send it all home, and hope the GBP bounces back one day.

But what is going on? Strong yen is going to cause havoc here with the manufacturers right? Future seems a little worrying right now...


Its unbelievable. When I came here at Easter last year, I dropped 5 grand in salary, but have since made that up and more thanks to the plummeting pound.
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I wonder where its going though, Japan cant hold out with such a strong yen for long can it? Wasn't it Japan who was calling for a G8 summit about the global crisis...?

 

I wanna know if the yen is gonna be strong for a few years or if the BOJ are gonna scupper it somehow.

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The interest rate in Japan is around half a percent -

 

Central bank rates

US 1.50%

EURO 3.75%

UK 4.50%

CA 2.50%

Japan 0.50%

Swiss 2.50%

AU 6.00%

(source is here )

Makes you wonder why the yen is so strong against the AUD and a lot of other currencies. Anyone know?

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  • SnowJapan Admin
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Any chance of amalgamating this thread with the strong yen thread in 'off-topic'?


I have done that. I think. I hope it all still makes some sense! (Not totally confident on how that all works....)

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The yen is viewed as a low risk currency. So in times of volitile markets and exchange rates people buy yen. Think of it as a way of insuring yourself over other high risk currencies. When demand for a currency goes up so does the price...hence then yen has become stronger.

 

High risk, high yield currencies such as the AUD and NZD(highest interest rates in the world) have attracted Japanese investors for the last few years. Why? because interest rates in Japan are almost zero and they can earn high interest in these far off lands. This created a demand for the NZD and AUD, and this pushed up the price..NZD and AUD became expensive.

 

Once the global economic crisis took hold investors decided that they would rather not have their assets in a foreign land with a high risk currency. Hence the AUD and NZD were sold off by these same investors. When everyone sells something the price goes down.

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The reason the £ has taken a beating is due to sterlings perceived strengths and the bedrock of that are financial institutions (the City) and the housing sector so people have been getting shot of sterling as they're down the toilet. The pound has been further undermined by a cut in interest rates and the Bank of England's gloomy prediction of recession yesterday which points towards further interest rate cuts. So I think rather than the Yen being strong its the other currencies being weak. Some believe the Yen will stay strong until the end of 08 at least, or rather the £ is fecked until god knows when. I'll mainly be eating cup noodle on my trip and not visiting so many onsen. eyes

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Also as well, the banks didnt lump much of their assets into foreign institutions - so when the other crashed, the Japanese banks we're relatively safe - a lesson they learnt from the bubble era.

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So basically, when foreign stock markets are doing well and foreign interest rates are high people don't want yen because the yen sucks. Nobody can make any money with yen. But then when people start loosing money abroad and those foreign currencies aren't attractive anymore and the yen does well. Volatility and things generally sucking abroad => a strong yen, even if things suck in Japan too...

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Originally Posted By: RobBright
Also as well, the banks didnt lump much of their assets into foreign institutions - so when the other crashed, the Japanese banks we're relatively safe - a lesson they learnt from the bubble era.

That's good. Same goes for Canadian banks which are relatively very sound. Canadian governments got lots of money too after running a surplus for a while until now. But the Canadian dollar's fall might be steeper than even the Aussie and the pound. From around 124 yen to around 70 yen in a number of months. Anyone know what a fair price for a barrel of oil is?
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