Japanese Yen: Outlook

Many questions arise when investors think about the Yen. Most often then wonder if its value will increase, how long will an increase take if one is to happen, as well as, what benefits will result for the people that invest in the value the Yen is presently at. With all investments, of any kind, there is always some type of risk that could result.

All over Japan people in the banking system are trying to get investors to move away from the US Dollar as the sole currency option. This aids in the increase of the Yen’s value. At a time when the Yen is valued at 0.11 in comparison to the US Dollar, an increase would be very much welcomed and appreciated. Researchers feel that a dependence on the security of the Yen also aids in its value increase.

A big consideration for Japan is the United States. During the summer of 2009 several unexpected economic woes plagued the US at the hands of an increase in unemployment within the States. Unemployment reached record highs in the United States and that coupled with financial bailouts caused investors and stock traders to put their funds into what researchers call lower yielding assets. Yen is being used in more frequency since the summer because Yen was invested in as opposed to higher yield currencies, as well as, used to pay back accumulated loans and debts.

The Yen will profit if the US dollar can be removed from the top currency spot. The removal of the US dollar from the top spot would allow other currencies to receive their shares. Researchers feel that should the Yen gain vocalized popularity then its rise will falter before it can even reach its potential. At the time of writing this article, the Yen appears to be on its way upward.