If the U.S. dollar is appreciated (whereas the yen is depreciated), how are U.S. imports and exports affected?
The U.S. dollar is appreciated (demand for the dollar is up, while supply is down). The yen is depreciated (demand is down, while supply is up).
will buy 100 yen
1 yen will buy 1/100 of a dollar
What is the effect on the U.S. economy (i.e. imports and exports) of this appreciation or depreciation?
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Tagged with: As the U S dollar appreciates and the Japanese yen depreciates • demand • depreciation • dollar • economy • effect • If the dollar appreciates relative to the Yen it can be said that • imports and exports • supply • U.S. • yen
Filed under: Currencies

If the dollar appreciates, that means it becomes more expensive relative to the yen. Therefore, US made goods will be more expensive to the Japanese, and Japanese goods will be less expensive for the Americans. US exports will fall, and imports will rise.