Strong yen - Endaka (English spelling) strong yen

Japanese: 円高 - えんだか（英語表記）strong yen

A strong yen (weak yen) means that the value of the yen against other currencies increases (decreases). After the shift to a floating exchange rate system in 1973, the value of each country's currency against the yen began to fluctuate according to economic conditions such as economic growth rate and inflation rate. The sharp appreciation of the yen from 1985 to 1988 occurred due to Japan's current account surplus, relatively high economic growth rate, low inflation rate, and cooperation among countries to correct the high dollar. As a result of the strong yen, export-oriented industries were hit hard and Japan fell into a recession due to the strong yen, but the improvement in the terms of trade also generated profits at the intermediate trading stage. In addition, domestic prices remained stable due to the fall in import prices, and domestic demand-led economic growth was achieved from 1987 to 1990. After that, the yen repeatedly appreciated, reaching the 100 yen range to the dollar in July 1993 and below 80 yen in April 1995, but the strong yen during the recession was one of the factors that delayed economic recovery. Conversely, when the yen weakened from late 2001 to early 2002, the effects of the weak yen were an increase in exports and improved corporate profits.

(Makoto Honjo, Auditor, Daiwa Institute of Research / 2007)

Source : "Chiezo" published by Asahi Shimbun Publications Co., Ltd. About Chiezo

Japanese:

円高(安)とは、円の他国通貨に対する価値が高まる(低下する)こと。1973年に変動相場制に移行した後は、円に対する各国通貨は、経済成長率やインフレ率などの経済情勢に応じて価値が変動するようになった。85〜88年の大幅な円高は、日本の経常収支の黒字、比較的高い経済成長率、低物価上昇率に加え、各国協調によるドル高是正のために起きた。円高の結果、輸出型産業が打撃を受け、日本では円高不況となる一方で、交易条件の改善により中間取引段階では利潤も発生した。また輸入物価の下落により国内物価の安定は続き、87〜90年度には内需主導型経済成長が実現した。その後、93年7月には1ドル=100円台、95年4月には80円割れとたびたび円高に見舞われたが、不況下の円高は景気回復を遅らせる一因になった。逆に2001年後半から02年前半の円安時には、円安効果として輸出増加や企業収益の改善がもたらされた。

(本庄真大和総研監査役／ 2007年)

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