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Int Finance

In: Business and Management

Submitted By pkalapr
Words 3720
Pages 15
Nottingham University Business School

MBA (Finance) Programme

N1DM28 International Finance

Discussion and analysis of the movement in the value of US dollar against the Japanese Yen from 2002 to 2011

Kala Premarani Perumal

Student ID: UNIMKL 010085

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Executive Summary

This paper is undertaken to discuss and analyse the exchange rate movements in the value of US dollar (USD) against the Japanese Yen (JPY) from 2002 to 2011. We could evaluate based on the exchange rates, that as an overall the JPY has appreciated against USD during this phase. The JPY had appreciated by 57% over these years (average 2002: ¥125.31/$ to average 2011: ¥79.72/$). The paper identifies the significant influence of the movement and concludes how the future trend would be. The details incorporated in this paper was obtained from business magazines, electronic sources, conference papers and journals relating to the foreign exchange, economy and international trade between these countries.

Table of Contents

Executive Summary ii 1. Introduction 1 2. Period 1-January 2002 – January 2005 a) Economic Climate 2 b) Current Account Balance 3 c) BOJ Intervention 5 3. Period 2-February 2005 – June 2007 a) Monetary Setting - Interest Rate in United States of America 6 b) Carry Trade 7 c) Oil Costs 7 4. Period 3-July 2007 – December 2011 a) Current Account Balance 8 b) Economic Climate 8 c) Carry Trade 9 d) BOJ Intervention 10 e) Natural Disasters 10 5. Conclusion 11…...

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