Japanese Yen's Historical Story In The Forex Industry

The Japanese Yen has been through a lot of survival situations for centuries

. That's why many people can't believe that the Japanese Yen was able to snatch the place in being one of the top 3 of the most traded currencies all over the world. Japan is undeniably one of the most infuential countries nowadays. But behind this success was a long trail of hardship. It all started in 1870 when the Japanese Yen was considered as a currency.

After the World War II, it has almost lost all its worth in the global market due to instability. This currency was able to recover when the Bretton Woods agreement was replace in the year 1971. The rate of the Japanese yen at that period of time against the US dollars was at Y360 per US $1. From that moment on, Japan was able to recover their losses and stabilize their economy. Everyone knows that the rate of all currencies mainly depends on their economic and political status. So one method of making your currency rate worth much higher is to improve your economy and have a nice political feedback and management.

Though during that time it have helped the Japanese yen's status to worth much more it is still undervalued. Because of this happening, Japan has worked hard to improve their economy for the better and soon it was considered to be one of the tight competitors of the US dollar. The Japanese yen started to depreciate in the year 1974 up to 1976. The trials of this currency didn't stop there. Again it was tested in the late seventies and early eighties as the price of oil increased.

The Japanese Yen only began to increase its value when overseas establishments began to invest.

It has been the favorite pair of the US dollars and due to that it again increased its worth. The pairings in the forex market somehow protrude the communication of the nations being paired. For it simply means that many people who are on the country requires this and that goes vise versa to the other one. Another reason is, maybe it will be cheaper if they buy the product using this certain currency than the other. Being paired to the most well-known currency only means one thing and that is the factors of being a potential major country is within that country.

Nowadays, the yen is very well know in the forex market. It has been regularly in demand. Its condition now it is more comparable to the US dollar. The forex exchange world has a very high liquidity rate and becoming one of the most traded currencies simply shows that Japan has become strong and stable.

by: Devon Reyes

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