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Old 03-03-2007, 10:13 PM
suginami suginami is offline
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Join Date: Dec 2001
Location: Southern California, U.S.A.
Posts: 8,538
I'm not sure I would call the yen weak vs. the dollar.

First, the yen and the dollar are freely floating in world markets. The market determines the value of a currency.

We have a huge trade deficit with Japan, which means the Japanese are selling / converting dollars into yen to bring the money back home.

We also have a huge budget deficit, and the Fed sells debt in the form of bonds, which the Japanese / Chinese and other governments in the world buy. The more debt we have to finance, the further it drives down the value of the dollar.
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