The Impact of the Global Financial Crisis on the Exchange Rate of Japanese yen

Authors

  • Дарья Валерьевна Смирнова St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

Abstract

The global financial crisis has had a considerable impact on the foreign exchange market: the depreciation of all major currencies went along with the rapid appreciation of Japanese yen. The main causes for such an appreciation of the yen are: (1) shortening of the yen carry trade, (2) high risk aversion among investors and as a result capital flows to Japan as yen is one of the save haven assets, and (3) long-term deflation in Japan. 
High exchange rate of yen weakens the competitiveness of Japanese exports and may cause production shift to overseas in the long-term. The BOJ had to intervene in order to weaken the yen during September 2010. As the intervention was single-handled, yen exchange rate remains rather high and is not predicted to overcome 90 yen per 1 US dollar in the following six months.

Keywords:

monetary policy of Japan, global financial crisis, yen exchange rate, yen carry trade, save haven assets, Bank of Japan intervention

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Author Biography

Дарья Валерьевна Смирнова, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

аспирантка

References

Литература на русском языке

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Translation of references in Russian into English

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Published

2010-12-30

How to Cite

Смирнова, Д. В. (2010). The Impact of the Global Financial Crisis on the Exchange Rate of Japanese yen. St Petersburg University Journal of Economic Studies, (4), 144–149. Retrieved from https://economicsjournal.spbu.ru/article/view/3158

Issue

No. 4 (2010)

Section

Short Scientific Reports

License

Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.