Why japanese currency looks like weaker(USD 1 = yen 108) but their economy is seems to be stronger?

Question

Why japanese currency looks like weaker(USD 1 = yen 108) but their economy is seems to be stronger?

Answer 1

If you've been following the exchange rates for years, you'd see how the dollar looks weak, not yen. When the market crashed in 1987, it went below 200yen. Previously $1 was maybe Y250. After that, there have been a couple times when the dollar was below Y100! Right now, Y108 is still really low and bad. (But in terms of the past few days/weeks, it's a good rate!) When I visited 2 years ago, it was about Y120, which was still kind of low for my tastes given the long term history, but I was pleased with the rate given the more recent history of the dollar.

Right now most of the world's economies are relying on each other and the dollar (oil is traded in dollars) so the dollar tends to get more air time in the news.. but Japan's economy is not as strong as you might think. Especially in the Japanese mind, things have not been right since the bubble burst.

Answer 2

Higher currency value means taking money from the people.

Japan was always good in export so people are likely to invest there. The government stays away from the economy, it has a lot of debts right now, it's all about stability