Yen Likely to Strengthen Over Next 3 to 12 Months: Nikko Asset Management

Yen Likely to Strengthen Over Next 3 to 12 Months: Nikko Asset Management

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Interactive Video

Business

University

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The video discusses the factors contributing to the strengthening of the Japanese yen, including potential interventions by Japan's currency chief, a shift from trade deficit to surplus, and increased tourism. It also covers the impact of interest rate differentials, with the Fed expected to raise rates slightly before pausing, and the BOJ's potential actions. The influx of money into the Japanese stock market is also highlighted. The video concludes with an analysis of which sectors will benefit from the yen's strength, focusing on domestic demand and tourism, while commodity sectors may see less growth.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main reasons for the expected strengthening of the Japanese yen?

Rising oil prices

Booming tourism from China

Decreasing interest rates in Japan

Increased exports to Europe

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might the actions of the Federal Reserve affect the Japanese yen?

By increasing commodity prices

By reducing the rate differential

By causing the yen to weaken

By increasing the trade deficit

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant factor contributing to the flow of money into the Japanese stock market?

Increased foreign investment

Interest rate differentials

Strong domestic demand

High inflation rates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sectors are expected to perform well with a strengthening yen?

Export-oriented sectors

Yen-sensitive sectors

Domestic demand plays

Commodity sectors

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What potential change in monetary policy is mentioned that could impact the yen?

Decrease in interest rates

Increase in YCC by 25 basis points

Introduction of new currency controls

Reduction in government spending