Dollar rises above ¥107.50 on Fed rate hopes

The article reports the recent appreciation in the value of US Dollar compared to the value of Japanese Yen in response to the expectation of Interest rate hike by the Federal Bank of USA. The appreciation of US dollar was further attributed to the positive decrease in Unemployment figures.


Topics include Currency Appreciation , Floating Exchange rate system and its advantages and disadvantages on domestic production and International Trade. Explain the effect of Interest rates on the Exchange rates using the changes in the Exchange Rate diagrams and the National Income equation .


Evaluation will cover short term and long-term advantages and disadvantages of Currency Appreciation , Floating Exchange Rate system and its domestic producers, Current Account Deficit, Employment levels, Government Revenue and Economic growth in USA and Japan.