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US
Dollar vs the Japanese Yen
The
US dollar is hurting; that is not news
to anyone. The dollar was one of the hardiest currencies of
the 20th century, but the 21st century has brought a different
fate altogether to the US dollar. The dollar has seen a steady
and unfortunate decline for quite some time, based on current
events in America and in the rest of the world. As the currency
has declined, so has the economy, and the economy has been
affected by a multitude of other factors as well.
The Japanese
Yen has done quite well for itself in the world
of world currencies. Just like the dollar, the yen has long
been known to be one of the stronger world currencies. However,
the yen has been grossly affected by the advent of the Euro,
just the same as the US dollar has been affected. For both
the dollar and the yen, the Euro has not been a good addition
to the world market of currencies. The Euro has done extremely
well for itself, but it has knocked down these other two world
currencies on its rise to the top.
About the only currency vying with the Euro for prominence
is the Great Britain Pound; this currency has continued to
be extremely strong despite the Euro. A lot of Europeans criticized
the British for not joining the Euro countries in their financial
endeavor, but Great Britain’s choice to not give up their currency
has turned out to be an extremely wise one. The pound is a
formidable currency on the world market--as is the Euro.
The yen and the dollar do not share such a brilliant prognosis.
Both currencies have been steadily declining though to read
some articles one would think that the dollar is the currency
disaster of the moment. To read another article, the yen seems
to be the currency disaster of the times. The bottom line is
that both currencies are doing poorly lately and seem to still
be on a downward slope. The reason that their ill fate catches
so much attention in the media is that they were once both
powerhouse currencies. The true tragedy is to be a real success
story and then see a miserable decline; this makes the decline
that much more memorable for the media, and somehow the rest
of the world seems to like to laugh at the misfortune of a
once rich currency that suddenly takes a downward spiral.
Some online reading suggests that there is no reason for the
demise of the Japanese yen. On the other hand, there are always
numerous reasons cited for the downward slope of the US dollar.
Starting with 9/11 and the economic fall-out, as well as the
general, nation-wide, type of depression in a financial sense
as well as a general outlook sense, the reasons for the decline
of the US dollar are many.
It’s partially because of this fate of the US dollar that
the yen has seen recent falls. Of course, the yen is not inextricably
linked to the dollar, but the connection is not a negligible
one either. On the Forex market, the yen must first be traded
with the dollar before it can be traded with the Euro; trading
the yen for the Euro is not actually a possibility, so the
link between the yen and the dollar becomes a little clearer.
The link between the yen and the Euro is only a secondary link,
by way of the dollar.
The bottom line is that the dollar and the yen are both on
the decline, and have been for quite some time. No upward change
lies on the immediate horizon either.
# # # # # SolveYourProblem.com : 2007
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