Finance, Forex and Investments

How come Japan's currency Yen's value has gone down even below the Indian Rupees??

I remember a few years ago it was1 Japan Yen = Rs20 but today Rs.1= 2 Japan Yen. How is it possible?? Japan has a developed economy and it's one of the leading countries in the world whereas India is still in a developping stage. So don't u think this is bizarre??

Public Comments

1. ok i love japan im an expert, the first reason is because japan is having there items be more yen When japan starts lowering there prices it will go back up
2. I think Japan is deliverately nuking its own currency to keep up with the falling dollar. Europe is under pressure to do it as well and start a race to the bottom.
3. The value of most currencies partly depends on the interest rate people get in money market accounts and in government bonds. And the Japanese interest rate is one of the lowest in the world at the present time. Also, the Japanese government deliberately manipulates currency markets in order to keep the value of the Yen down. This helps the export industry in Japan.
4. Yes it is true that Yen has appreciated a lot. This was the cause of concern for the stock market crash recently. The currency does not only depend on the economy of the country. It also depends on various other factors like the the country's export / import policies, global commodity prices, crude supply / crunch, country's credit policies etc.
5. To attract tourists may be, or easier life for the citizens. I think Seoul of Korea is becoming the most expensive city in Asia now.