US dollar falls to 14-year low against the yen

BBC News: Click Here

“The US dollar has hit a 14-year low against the Japanese yen with low interest rates in the US making the greenback less attractive to investors.”

According to BBC News, the US dollar has slipped to 86.5 yen. It seemed to have lost its name as ‘world currency.’ With low interest rates and unstable economy within the US, the investors are ditching the US dollars and finidng an alternative (such as Euro, Yen, or gold). This has significantly affected the US dollar to fall. Investors wanted safe, high-profit currency; not low-profit, unstable US Dollar.

While the US Dollar slipped to 86.5 yen, other currencies such as Euro, Yen, or gold have increased dramatically. The price of gold was especially surprising. The price of gold was steadly rising for last 5 years! This significantly increased especially during the last 2 years when there was a global economic recession. Investors wanted more safe investments. So they chose gold.

Yet, I do not think the fall in US dollar is a bad news for US automobile companies or export companies. As the value of US dollar compared to other major currencies has fallen, the exporting companies have gained price advantage over other companies in the country with high currency. Also this will allow companies in the US to gain more control of the domestic market as other companies based on the country with high currency compared to the US dollar will lose a price advantage.

<A terrified Japanese man reluctantly trading US dollars for Japanese Yen>

Japanese exporting companies would be seriously concerned about this situation. As 40% of its economy is based on exporting, it is a serious matter related to the recovery of economic downfall in Japan.


6 Responses so far »

  1. 1

    harecon said,

    Wow. I’m surprised to see the similarities in our blogs. Keep it up sang. I believe in you.

    • 2

      11kimsa said,

      Thanks Harmeet 🙂

    • 3

      keitaseconblog said,

      Nice post. Seems like the dollar will not recover from this collapse.
      We have already inflated the dollar, and every nation that has dollars will go down with the US. I don’t think there is any way of keeping up the pace of printing dollars.

  2. 4

    […] As you see in the graph, the debt will increase and increase until it is 100% of US’ GDP. It will be not long till it goes over 100%. Now, many people would be seriously concerned about this problem by now. Many people will wonder, “How has the biggest economy in the world got an exponential amount of public debt?” When I have googled to solve this problem, many people posted that the ‘War Against Terrorism’ has caused this. I remember looking at a graph of US public debt skyrocketing right after the year 2001 when the President Bush declared ‘War Against Terrorism.’ Therefore the prolonged exhausting war of Iraq and Afghanistan has certainly been a part of the cause. As the result of these wars, it has debilitated US economy. This could be noticed from the recent news reporting, US dollar fell to 14-year low against the yen. […]

  3. 5

    kattyy124 said,

    It’s a great time for Japanese Americans to change their yen into dollars. I heard that many people in Japan increased in income by 1.5 times 🙂

  4. 6

    georgewb said,

    It’s certainly an advantage for some people and a disadvantage for other people. 🙂 If you are lucky, you are in for 150% (or more) increase in your income, like a jackpot!

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