StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Dollar versus Yen -The Road Ahead - Essay Example

Comments (0) Cite this document
Summary
The dollar declined for a fourth day against the yen after a report showing slower-than- expected inflation eased speculation that the Federal Reserve will raise interest rates more than twice this year. The dollar has fallen more than 1.8 percent versus the yen the week ending Mar 16, the biggest drops since the week ended Jan…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Dollar versus Yen -The Road Ahead
Read TextPreview

Extract of sample "Dollar versus Yen -The Road Ahead"

___________ ____________ ____March 2006 Dollar versus Yen-The Road Ahead Proposition The dollar declined for a fourth day against the yen after a report showing slower-than- expected inflation eased speculation that the Federal Reserve will raise interest rates more than twice this year. The dollar has fallen more than 1.8 percent versus the yen the week ending Mar 16, the biggest drops since the week ended Jan. 6, after reports showed a record deficit in the U.S. current account and retail sales declined. Market opinions are afloat that we might be in a period of dollar weakness as present US data is supporting the notion the Fed will go only about one or two more times for increasing the interest rates' .This quite overlooks the fact that the Fed has raised its benchmark overnight lending rate 14 times since June 2004 to 4.5 percent from 1 percent, to prevent the economic expansion from overheating. Interest-rate futures demonstrate that the traders are certain the Fed will increase its benchmark to 4.75 percent on March 28, and predict about a 65 percent chance of another increase to 5 percent at the May meeting. However the outlook was not the same say in October 2005 when Fed was expected to go in for graduated dosages of increase in interest rate in keeping with the trend began since June 2004. The dollar had then risen 2.3 percent against the yen since the end of June 2005. The dollar ran its third straight quarterly gain, reported in October 2005, against the yen, the longest winning streak since 2001, as the Federal Reserve stuck to its policy of ''measured" increases in interest rates. The markets had then expected the dollar to rally to about 115 yens. The yield advantage of 10-year US Treasury notes with Japan had averaged 2.87 percentage points in 2005 year and reached as much as 3.27 percentage points on March 28 2005. As a result of these Japanese investors were buying the dollar to purchase overseas assets, such as Treasuries strengthening interest in dollar. As compared to this The Bank of Japan had kept rates near zero since 2001.US Rate increases had helped notch an 11 percent gain in the dollar vs. the yen. However for the first time ,in this scenario Bank of Japan indicated that the yen may be supported by indicating a timetable for ending its policy of holding interest rates near zero.BOJ had also decided to stop pumping money into the economy and to recommence forecasting of inflation after a seven-year absence.
The risks to the US dollar in 2006 are being widely debated. Last year too Bill Gates, Warren Buffett and George Soros had predicted a crash of the US dollar which, however, did not materialize. However sufficient arguments exist today on why the US dollarwill stopdefying gravity and fall this year. As stated abovein the last few weeks the dollar has kept on falling relative to the Euro and Yen, as expectations of relative short term interest rate differentials and growth rates are turning against the U.S. US slow down, which may or may not trigger global slow down, is quite a probability with risks of a disorderly adjustment triggered by the bursting of the US housing bubble and the stagflationary effect of another oil shock driven by supply tightness and a confrontation with Iran. Moreover a large trade deficit of 7% of GDP has led to an unsustainable accumulation of net foreign liabilities (Roubini, 2006). These combined with domestic slowdown leave out weak signals for dollar with slight corrections in or around the two expected step-ups. This outlook would run concurrently to the period required to smoothen out these imbalances.
Works Cited
Roubini Nouriel,Global Economics Blog ,'Global Imbalances, the US Dollar and Globalization Challenges at Davos', Created: Jan 27 2006,Retreived March 17,2006 http://www.rgemonitor.com/blog/roubini/current_account_and_exchange_rates/ Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Dollar versus Yen -The Road Ahead Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Dollar versus Yen -The Road Ahead Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1502511-dollar-versus-yen-the-road-ahead
(Dollar Versus Yen -The Road Ahead Essay Example | Topics and Well Written Essays - 500 Words)
Dollar Versus Yen -The Road Ahead Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1502511-dollar-versus-yen-the-road-ahead.
“Dollar Versus Yen -The Road Ahead Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1502511-dollar-versus-yen-the-road-ahead.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Dollar versus Yen -The Road Ahead

Dollar General

... Dollar General Dollar General has been known as the country’s largest small-box discount retailer ever since our mothers have existed. It has always envisioned being of service to various stakeholders through its simplicity in offering an array of consumer products of the most popular brands at the best offered price. One has been privileged to be part of Dollar General as a Category Supervisor in charge of organizing and managing the products offered at the store, monitoring inventory levels, determining vendor information, and projecting changes in demand and supply. Dollar General can actually be classified as a convenience store that makes shopping easier to consumers. Most people think that working in a convenience store is likewise...
2 Pages(500 words)Essay

Economics _ Whither the Dollar

... questioned the U.S. dollar’s future as a global reserve currency. He said using a mix of regional currencies would make the world economy more stable. Russia has proposed regional reserve currencies including the Ruble as part of the answer to the global financial crisis. China also presented the Chinese Yuan as the next possible reserve currency. China holds 20 percents of all foreign reserves (roughly $1 trillion) and is a growing economic power and a massive exporter. Yet there are a few nuances regarding the Chinese Yuan such as economic instability in Asia etc. There have been many suggestions and speculations about which currency could potentially be the reserve currency in the future such as the dollar, the euro, the yen, the pound...
5 Pages(1250 words)Essay

Dollar Tree

...? Dollar Tree Case Study Dollar Tree Case Study Introduction Chains of discount stores have come and gone across Americafor decades. The reality is that the American consumer has already yearned from discounts when purchasing products, so stores like the Dollar Tree have always had a certain niche in the market. The effective management of such companies, however, is quite difficult to achieve. Not only must massive amounts of product be procured on a regular basis in order to attract customers, but expenses must be minimized as much and as consistently as possible in order to realize any type of revenue. As such, multiple branches are needed of any one retailer in order to truly realize profit on the scale that would sustain the viability...
7 Pages(1750 words)Case Study

Dollar Decline

...?Dollar Decline INTRODUCTION A decline especially in the purchasing power of a dollar mainly occurs due to the rise of certain economic problems thatinclude weak recovery process and increasing public debt among others. This worldwide concern may adversely affect the economic performance of the United States of America (US) at large. The effects can appear in the form of increased level of export activities, minimizing purchasing power of the individuals on an international basis, rising commodity prices and upward trend of interest rates. The declining value of dollar is likely to unfavorably affect the purchasing power of the US citizens due to increased price of commodities (Feldstien, “The Declining Dollar”; Hammer, “7 Economic...
5 Pages(1250 words)Essay

That of Tien Yen Chyn

...Best Journal: That of Tien Yen Chyn, Spring 2009 In point of fact, the journal submitted by Tien Yen Chyn seems to be the best from a scholarly perspective. Remarkably, Tien has touched on every single aspect of Critical Thinking and managed somehow to encompass this concept. He not only provided some concrete arguments to consolidate his claim and to defend his views, but he also underlined the basic precepts of Critical Thinking which every doctor should embody before ushering into the work. What I liked most in Tien’s journal is this smoothness while shifting from an idea to another, his ability to use simple dictions that can be understood even by the common reader who is not so much specialized and familiar with medical issues...
1 Pages(250 words)Essay

Should Japanese Yen be appreciated or depreciated against U.S. Dollar

Over the years owing to crisis US has adopted unconvincing monetary policies as a measure for bailout and recovering from the miserable economic situation. This has made dollars almost worthless. Under such circumstances Japan has also adopted the mechanism of quantitative easing leading to appreciation of Japanese Yen. But it has not helped the Japanese economy much. Credit growth has been on the slower side (Zarathustra). Taking this as backdrop the paper intends to trace out the effective exchange rate policy for Japanese economy, whether it should be appreciation or depreciation, and citing various reasons and arguments for it.
Japanese Yen is such a powerful currency that it has appreciated even under conditions of quanti...
6 Pages(1500 words)Research Paper

Prince Tan of Yen

...Prince Tan of Yen The story of Prince Tan of Yen is a captivating narration that features the situation of the kingship in the traditional Chinese society. Prince Tan of Yen was held as a goodwill hostage for a long period of time by the King of Chin and suffered a lot of mistreatment during this period. After his miraculous release, the Prince felt very disgraced and revenge was the only thing that he could figure out. He felt that the death of the King of Chin would be the only way to save his face from the shame that besieged his character as the Prince of Yen. Although it was quite difficult to figure out the way he could manage to fight such a strong King, he worked relentlessly and sought the advice of the wise men of Yen...
3 Pages(750 words)Essay

The Almighty Dollar

... It seems that material wealth has always been a number one in the American culture alongside with the opportunity ofself-determination and self-fulfillment. Today, as the economic situation in the country and the whole world shows, the time has come to change the priorities in the societys life. The United States are in great debts, and to some degree it is the societys fault as well because people have not noticed that serious problems were coming for they were in pursuit of material wealth. Now the youngest generations have to pay off the debts of the previous ones; so, it is a high time to put the longing for material wealth aside. Not only Americans but all the other people as well should forget that money is everything... It seems...
1 Pages(250 words)Essay

The High Australian dollar

...INFLUENCE OF RISE IN AUSTRALIAN DOLLAR ON FOREIGN TRADE Executive Summary The purpose of the essay is to analyse the impact of rising value of Australian dollar on its foreign trade. This essay provides clear insights into various factors that have been driving the value of Australian currency just after the Global Financial Crisis (GFC). The study also helps to uncover range of factors that influences the Australian economy both in short and long run. The essay found that, the increase in the value of Australian dollar has both short term and long term impacts on various sectors, for instance, unemployment rate, economic stability, manufacturing and tourism. Even if it becomes difficult to overcome these issues in the short run...
7 Pages(1750 words)Essay

RESEARCH ON THE JAPANESE YEN

... current, for instance, the Yen must have the same purchasing power in a foreign country. The study uses the Japanese Yen together with other currencies in testing the PPP hypothesis and focuses on the empirical analysis from 1980 up to March 2013. This period is divided into three windows. The first window is what is referred to as the complete sample; the pre-crisis sample, which began in January 1980 and ended in August 2008, is the second window. The third window is referred to as the crisis sample, starting from September 2008 up to March 2013. The Japanese Yen among other currencies such as the Euro, the British pound and the U.S dollar are key currencies of the recent floating exchange rate period. In this regard, the first step...
8 Pages(2000 words)Research Paper

The Social and Cultural Contexts of Deviance

Generally, deviance is a behavior that is seen as harmful, disruptive, or criminal. However, it may come as the result of being statistically unique. This brings into question whether there can be positive deviance. For example, if a student got straight A+ grades, the Underachievers Club may view them like a deviant. As a group, they may place sanctions on them above and beyond what they would the average student. This illustrates the concept that deviance must be seen through the lens of the social or cultural context that it takes place in (Keel, 2008).
Social norms are the types of behavior that are established and maintained by society and are considered to be acceptable. Because deviance is the transgression of a norm a...
9 Pages(2250 words)Literature review

Public Relations and School Administration: The Jena Six Story

The infamous Juvenile Correctional Centre for Youth is located in Jena, with the institution closing after merely 2 years of its opening. The closing of the institution was owed to prevalent brutality and racism. One of the scandals they were involved in was the choking of black juveniles during a meeting with a lawyer. The guards also paid inmates for them to wrestle and fight with each other for their entertainment and also laughed at teenagers who are trying to commit suicide inside the jails (Witt, 2007).
At one time, district boundaries lines had been drawn to establish or maintain white-non white separation. It was in the last 20 or so years that nonwhites had begun to move into several areas; Jena for one, previously p...
11 Pages(2750 words)Term Paper

The Characters Tyler and Jack in Fight Club and Calvin and Hobbes the Philosophers and the Cartoon Characters Based Upon Them

...The Characters Tyler and Jack In Fight Club And Calvin and Hobbes (The Philosophers and the Cartoon Characters Based Upon Them): A Comparison Analysis of literature in a creative way requires some seriousness of thought. Here it will be attempted to link excerpts from the script Fight Club and the philosophies of John Calvin and Thomas Hobbes. 

The major link between the two will be demonstrated through the ethical and moral scruples of the cartoon Calvin and Hobbes, which will be described further in detail later on herein. The characters in Fight Club are supposed to mirror Calvin and Hobbes, and Calvin and Hobbes are supposed to mirror the philosophers John Calvin and Thomas Hobbes. 

 One of the more amusing... Characters...
6 Pages(1500 words)Assignment

The Extent to Which Unemployment Is a Microeconomic As Opposed To a Macroeconomic Problem

...Explain the extent to which unemployment is a microeconomic as opposed to a macroeconomic problem, and discuss the relevance of this analysis for government policy to reduce the rate of unemployment. Name: Roll No: Class: Subject: Teacher: Date: 26th April 2009 University Explain the extent to which unemployment is a microeconomic as opposed to a macroeconomic problem, and discuss the relevance of this analysis for government policy to reduce the rate of unemployment. Introduction One important goal of microeconomics is to analyse market mechanisms, which establishes relative prices of goods and services and allocation of resources limited by nature among the alternative uses of these goods and services. Microeconomics steps... the extent...
6 Pages(1500 words)Assignment

The Effects of Media to Its Audience

... The Effects of Media to Its Audience Introduction Media is known to have an influence on the audience. This can be attributed to the fact that the relationship of media and the audience completes the basic process of communication. The media and its components can be considered as the stimuli causing the audience to react in different ways. One of the main areas of interest in the said field is the affective process of the media. In the study undertaken, the main objective is to present the ways and means which exhibit the effects of the media on the different types and classification of audiences. In addition, the said effects are also classified into advantageous and detrimental in nature. The Media and the Audience... The Effects of ...
7 Pages(1750 words)Case Study

Communication Role at the Workplace

Internal communication in any organization has been found to play a significant role in regard to role achievement in any business venture. When the internal communication department closely works with the top management, it has been found that job satisfaction levels rise which in effect translates to higher individual and group output from the workers (HRM guide, 2009). It is the role of the internal communication department to ensure that the strategic organizational direction is passed on to all employees and followed as planned so as to guarantee the achievement of intended outcomes.
With the current developments towards globalization, knowledge availability has become more readily available and the economy has approache...
9 Pages(2250 words)Assignment

People as Cultural Beings and the Christian Posture

In recent times questions regarding the impact of Christianity over culture have become so prevalent that several of the modern intellectual disciplines consider it an archetype of orthodoxy that is aimed at restraining the newer cultural trends (Niebuhr 1956 p. 1-2).
However, the existing historical shreds of evidence clearly convey that despite Christianity has always been one of the most important factors in the context of determining people’s reciprocation towards a particular cultural trend, but different civilizations at different points of time have denied the impact of the Christian culture as those perceived that it can be a threat against individuality of their respective cultural tends, “Not only Jews b...
11 Pages(2750 words)Assignment

The Main Threat to Small Business

When it comes to reliability factor big businesses are able to sustain because of their track record. Big businesses are able to pacify their customers using their past successful track records.
Nowadays most of the business opportunities and orders are posted online. This means that business providers need to be well integrated with supplier systems through online facilities. The infrastructure of the business model needs to be updated. But this is not an easy task for small businesses. E-based procurement is possible only with a well-maintained network on the internet. This requires a lot of financial and technical necessities which could not be supported by small businesses. On the other hand, Big businesses are well equip...
8 Pages(2000 words)Assignment

The Concept of Karma in Pure Land and Zen Buddhism

Additionally, the views regarding the concept in different cultures outside Buddhism are also included.
The concept of karma can be considered fundamental in the Buddhist religion. It is related to morality and the manner of behavior of the Buddhists which can be illustrated in the verses of the Sanskrit Dharmapada which expressed that “evil should be prevented to be able to avoid sufferings” and there is no place a person can hide to be safe from karma. This is according to the verses that expressed that “not in the sky or in the ocean’s middle…where karma does not catch up with the culprit” (Conze 83).

These verses express the importance of karma in guiding the Buddhists in th...
6 Pages(1500 words)Assignment

Bernard Madoff : A Scapegoat of the Economic Crisis

Darwin was condemned and treated with contempt by the Church for proposing the theory of evolution that linked all living matter in the earth, including humans. In the case of Bertrand Russell, he was imprisoned as a conscientious objector, for expressing his opposition to British participation in the First World War. These are typical examples of people being wrongfully punished when they were guilty of no crime or fraud or misdoing. It would be highly improper to associate Bernard Madoff with the aforementioned luminaries, for he was truly guilty of carrying out the biggest financial fraud in modern history. At the same time, it would be simplistic to classify him as a victim of the contemporary judicial system. The truth, in fa...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Dollar versus Yen -The Road Ahead for FREE!

Contact Us