International Banking and Finance

Us/ Jpy

http://www.forexcrunch.com/category/forex-weekly-outlook/usd-jpy-forecast/

forecast march 30 – apr. 3

(Fisher, 2015)

Week 1 (March 16th to March 22th)

JPY/USD

When the Federal Reserve’s indicated the initial comment to raise interest rate in June gradually, the dollar keeps weakening slightly against the Yen. The news also brings Asian currencies shot higher against the USD within this period. However, stronger yen damages Japanese exporters since makes them less competitive overseas and crumbles their profits when repatriated (Japanese shares lead Asian losses, 2015).

A surprisingly downbeat outlook from the Fed triggered the foreign-exchange moves as investors scaled back expectations for how soon U.S. interest rates will rise, a move that threatens to yank cash out of emerging markets after years of inflows. But as the dust from the Fed statement settles, market watchers continue to expect a U.S. rate increase in summer, likely stoking the dollar’s upward momentum and keeping pressure on other currencies around the world.

http://www.wsj.com/articles/fed-battered-u-s-dollar-likely-to-eke-out-gains-in-asia-1426720426

http://www.japantimes.co.jp/news/2015/03/19/business/financial-markets/tokyo-stocks-fall-on-profit-taking-as-fed-comments-bolster-yen/#.VTIsZq2eDGc

(Tokyo stocks fall on profit-taking as Fed comments bolster yen, 2015)

http://www.nasdaq.com/article/forex-japanese-yen-flat-after-minutes-show-concern-on-consumer-prices-cm456890

USD/RUB

The Russian ruble appreciated against USD in recent week, strengthening from 62.25/USD to 59.3/US.

Possible reason of the growth is because of western economic sanctions over the Ukraine crisis. With foreign goods unavailable, Russians had to choose homegrown products and services. (Winkler, 2015)

Russia’s currency and bonds have outperformed all other emerging markets in the past month as oil recovered and a cease-fire took hold in eastern Ukraine. The ruble strengthened...