Falling US Dollar and Japan yen will create dramatic effects for both currencies if the current trends continue. Lower trade will affect both currencies. The US dollar will increase and the Japanese yen will decrease.
The Japanese Yen is the face of the Japanese economy. Now, it is suggested that the US Dollar fall can cause a fall in the Japanese Yen. The US Dollar will be lower and there will be a lot of questioning on Japan’s economy.
Japan is looking at Japan’s non-tax profits, where Japan can negotiate and buy oil and other resources to solve the nation’s fiscal issues. Oil will go up and the Japanese yen will decline as oil will have more buying power.
This all makes the US-China trade deal more probable. China is a big player and it has been the biggest trading partner for the US and Japan.
The Japan, which may be benefiting from the China trade deal, is in talks with China over the debt of China. As the debt is growing and being imported, China has been increasing its imports of debt.
China could allow Japan to take over some of its debt. Japan is gaining the independence to trade and play its own way. China is just assisting in the process and Japan is gradually becoming independent.
China has given a serious sign of agreement to the US on trade deal and this is very pleasing for Japan. It will boost the US-Japan trade deal. Japan will have a clear chance to gain a clear foothold in the United States as it is the largest trading partner of the US.
Japan can help in boosting the US economy and this will help it in its economic growth. The US dollar is a big factor for the Japanese economy. It will fall to a very low level, which will have an effect on Japan’s economy.
In order to gain the independence, the Japan will agree to this agreement. Japan will ask for the release of the debt of China. As this will bring the financial support and its economy will be stable, Japan will be more cooperative to the US on economic issues.
The global economy is being affected and the price of commodities and these will be affected too. The prices of commodities may be affected and this will affect the global economy.
No matter what happens, we must protect our currency and we should not worry about it. The US dollar has been falling lately, so there is no reason to worry.