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Japanese Yen vs US Dollar, Grrrrrrrr!!!!
WTF??????
After the earthquake in japan the yen got STRONGER against the US dollar. This is KILLING me as I am paid in dollars, not yen.
Can someone who has studied economics please explain WTF is going on?
Why the heck is the yen getting stronger after a huge natural disaster that is goingto cost billions to clean up and hurt the japanese economy as well??
http://finance.yahoo.com/q/bc?s=USDJ...sic+Chart&t=5d
Didn't the Japanese gov't just dump billions of USD worth of yen into the banks to prevent the yen from losing value?
And, JP explain why you would want to live in Japan and get paid in USD please.
Raster, I don't know what the Japanese government/banks did. I have herd various stories from the news. So I cant say for certain.Quote:
Originally Posted by rasterbee
As for me, I run an american company based in CA. All our clients are in america. Our business acounts are with american banks. All clients pay us in US dollars, not yen. Understand why I am getting screwed now? Everytime I transfer USD to my bank in Japan I lose money. 3 years ago it was great. 120yen to the dollar. But now it is 80 yen to the dollar. A 35% swing....
I assumed it was something like that, but I was just curious and wanted to ask.Quote:
Originally Posted by japanpimp
(Your job, I mean.)
I just tried looking for it again, but I remember like 12 hours ago glancing over a link on Drudge that had something like "Japan gov't pumps $37bil in emergency funds into banks". I can't find it now though.
The Yen is at the same value against the dollar that it was last October/November. It's not like the Yen is gaining incredible strength. The market dropped the value of the Yen immediately after the quake, but that was a reactionary movement. This raise is simply the correction back the other way. The strengthening of the Yen over the last decade or so has been more of a reflection on the weakening of the dollar.
I think the dollar is going to get even weaker still. If you think the Yen should drop in value (versus the dollar), because of the disasters, then the cost of the disaster needs to outpace the fouled up US economy. I would say that you should compare the two currencies to the Euro if you want to assess their strength/weakness, but the Euro is on shaky ground and due for a drop, too. Comparing them to the Yuan would be pointless, since China controls it's currency to be tied to the value of the US dollar. Maybe Egypt would be a good... wait, no. Try to find a stable country's currency to use as a comparison tool.
But, the quick answer is that the rise is a correction to the initial drop in value right after the quake.
Rota, did you just delete your first post and repost it again after mine?
Yes, but not on purpose. The site is REALLLLLY lagging for me. The rest of the interwebz is fine. But, the Evony forums are dragging a lot. Things are jumpy and buggy and laggy and all sorts of messed up. :)
Ok, I asked my friend. She works in finances and investments.
After a disaster like in Japan, the local currency gets strong because there is high demand for it after the disaster. Supply/Demand.
The local currency is needed to help rebuild, pay out insurance claims, keep companies floating financially until they can return to business as usual.
Since there is a spike in currency demand after a disaster, the price or power of the currency goes up. Basic supply/demand stuff. So ok, I understand it now.
But is there really a spike? It's at 80 right now.
It has been between 80 and 85 for at least the last year, right? It's at the stronger end of that spectrum, but well within recent "normal value" of the currency. Or has it spiked into the 70's and I'm just looking at outdated information?
Hey guys, I think JP wants everyone to know he lives in Japan.
I believe you're correct. They pumped somewhere around 350 billion into the money markets and financial system hoping to stabilize their economy. Don't take my word for it though I'm no economist, I just saw something on CNN about it. :)Quote:
Originally Posted by rasterbee
well from what i have seen from the Japanese, they will do most if not all the contracting themselves and in turn will create more jobs and the shear supply and demand from inside their own country will be greater, so as far as a economy booster truthfully ya cant get much better then a disaster to lift the work force, maybe our BS government should take notes.
Yeah, its a shame they don't get hit by a disaster like this every year...Quote:
Originally Posted by BillyJoe
Any government can infuse their economy like that with a works project. It's just hard to get support for works projects, because they are typically superfluous ventures. People complain that their tax dollars are being "wasted" on the plan.
I agree with you but work projects have proven to work in the past. Correct me if I'm wrong but wasn't the Boulder Dam a work project during the Great Depression? I believe that one worked fairly well, then again I could be completely wrong.Quote:
Originally Posted by Rota
You are correct, so was Hoover Dam. Personally, I think the best works projects are investments in infrastructure. Roads and bridges and dams and power plants and utility lines and sanitation and sewers and blah and blah and blah and so on and so forth and etc...Quote:
Originally Posted by Leche
Hoover Dam is Boulder Dam, it was just renamed. The work projects you speak of are great but I think worldwide war is the best work project there is. Always a great way to get manufacturers hiring and production up.
Yes, I was trying to make a clever joke. I probably should have added a winking smiley or something to make that clear. DAM text based communication for not being able to impart "tone" to our words. (pun intended)Quote:
Originally Posted by Leche
;)
Public works during World War 2 may not have had any positive economic effects. So says my high school history classes, the works provided jobs to the unemployed. However, they were incapable of bringing America out of the Depression. World War 2 accomplished that.Quote:
Originally Posted by Leche
I see, unfortunately your joke went right over my head. :confused:Quote:
Originally Posted by Rota
You're absolutely right, hence why I said worldwide war is the best work project there is though war isn't technically a work project. I just failed at conveying a joking tone in my statement. :devil:Quote:
Originally Posted by Skirata
Anyways so yeah.. Yen vs. the dollar.
I think that Japanpimp was hoping the yen took a massive dip, sky rocketing his American dollars in value so he could buy more wimminz.Quote:
Originally Posted by SickbyDefinition
This is a factQuote:
Originally Posted by rasterbee
I was hoping so too, so my flights to Japan would cost less. Guess that dream's been crushed...:(Quote:
Originally Posted by rasterbee
I mean spike in value against the dollar.Quote:
Originally Posted by Rota
3 years ago 120 yen = 1 dollar
1 week ago 83 yen = 1 dollar, ouch.
today 77 yen = 1 dollar, super ouch.
Notice the huge spike in power after the quake. The graph spikes DOWN. Downward spikes against the dollar mean the yen is getting stronger. Upward spikes means it is getting weaker.
Teehee, wimminz.Quote:
Originally Posted by rasterbee
Values go up and down constantly. The Anerican economy is hurting right now, so the value of the us dollar is decreasing in Japan.. As well as many other countries. Since the Japanese government did indeed inject billions of dollars into it's economy, it's only logical that the value will go up. But this was done to counteract the damage on their economy by recent events. The value will probably teeter a bit more for a while.. But sooner or later it will stabilize.
Yes, that is why... when I was comparing the numbers in a range of 80 to 85, I said that the recent value of 80ish was the stronger end of the spectrum. Values closer to 85 would be the weaker number. You have confirmed that it has spiked in to the 70's (info I did not have at that moment). The value will probably be back in the low 80's within a few months, if not sooner.Quote:
Originally Posted by japanpimp