In English, a "strong yen" is seen as a positive.

There are constant cries of "It's a crisis!" from the government and business circles regarding the strong yen. Since around the summer of 2007, when the exchange rate was in the 120 yen range to the dollar, the yen has continued to strengthen. In mid-March of this year (2008), it briefly dipped below 100 yen to the 95 yen range, and it has now settled around 100 yen to the dollar. Replacing difficult financial and foreign exchange terms with their English equivalents can surprisingly make them easier to understand. A strong yen is expressed as a "strong yen." Conversely, a weak yen is a "weak yen" or a "cheap yen."

Once you hear it, you'll never forget it. Between "strong" and "weak," which is better? Everyone would naturally choose strong. It's only natural. A strong yen means the yen is more usable. A common example is an American ballpoint pen costing one dollar. If the exchange rate is 150 yen to the dollar, you can buy the pen for 150 yen. When the exchange rate becomes 100 yen to the dollar, you can buy the same pen for 100 yen. This signifies that the value of the Japanese currency, the yen, has increased, making it more valuable to consumers. To put it slightly exaggeratedly, a strong yen means that the credibility and value of the entire Japanese economy have been enhanced internationally.

We Must Not Forget the Context of the 360 Yen to the Dollar Era

At that time, Japan, having lost the war and been reduced to ruins, had virtually zero economic power. In April 1949, it was able to rejoin the international community with an exchange rate of 360 yen to the dollar. The era of 360 yen to the dollar lasted until 1971, a period of 22 years.

Subsequently, the Japanese economy grew, surpassing the United States in automobile and steel production to become the world's largest. During this period, the yen-dollar exchange rate steadily moved towards a stronger yen, progressing from 250, 200, 150, to 120 yen to the dollar.

Currently, it hovers around 100 yen to the dollar. The value of the yen has increased nearly threefold. This is because the world recognizes the strength of Japan's economy. Unlike interest rates, which are determined by the Japanese government and the Bank of Japan, exchange rates are decided by people all over the world. We should fundamentally view the high valuation of the yen as a positive effect. As a consequence of Japan's strong yen, the US dollar has shown a clear trend of weakening. Undoubtedly, America's overall power is in decline.

A Weak Dollar Accurately Reflects America's Decline

The phrase "a strong dollar is home-grown" and America's role in leading the global economy now seem like a distant memory. The widening gap in living standards, the quagmire of the Iraq War – there are numerous factors that can be cited as the underlying reasons for the historic dollar depreciation. Japan is an export-oriented nation, earning its income through exports. There is a strong tendency to simplistically view a weak yen as more advantageous.

However, Japan lacks domestic resources and relies entirely on imports for oil, food, iron ore, and other materials. We must not overlook the benefit of being able to purchase raw materials cheaply with a strong yen. Although it takes time for the effects to materialize, a strong yen, meaning a more usable currency, brings immeasurable benefits to both corporations and our daily lives. We hope you will understand this point well.

Finally, there is one more point to add. No nation has ever declined because its own currency became stronger. There are many examples of nations whose very existence was threatened because their currency weakened (a weak yen in Japan's case), leading to hyperinflation or making them vulnerable to foreign powers. Historically, there are no instances of a nation succumbing to foreign influence or falling into chaos due to inflation simply because its currency's value increased. This is natural, as it signifies the world's recognition of that nation's strength and security. We must truly understand the decisive meaning of a strong yen.