The biggest cause moving an exchange is said to be economic trends in the America. A dollar, America's currency, is also international currency. The thought "dollars is the safest currency in the world" is deeply rooted in all over the world. It is flowed in many international markets. Various trades in all over the world are implemented by dollars. As a result, dollars are bought and sold by the trend of economy, prices, and interest rates in the America.

Let me explain co-movement between am exchange and economics specifically. If there is prospect of America economic slowdown, dollars would be sold and strong yen would come up. A reason why dollars are sold is from market's distrust against America economy.

If there is prospect of America stable economic by contraries. Dollars are bought and weak yen and strong dollar come up. It shows market's secure feelings against America economy. That is the co-movement between interest rates and exchange. But there is an exception. Even though "there is a prospect of stable economy in America", it sometimes happens that dollars are sold all of sudden and becomes strong yen.

This is related to that the market always moves expecting in a half year ahead. Even though America economy is a good mood now, an exchange moves to strong yen weak dollar looking ahead if there is uncertain in a half year later.

This is the basic style of an interest rate. "It increases when its country economy is good and it decreases when its country economy is bad". It is the same thing about an exchange. "Dollars are bought when America economy is good, and dollars are sold, when America economy is bad". So it seems like they work in same way. Of course there are many cases they co-move. But in fact, it dons not only what they do.

By increasing an interest rate, it does not only mean that it increase as the economy enjoy a boom. For example, such various patterns of interest rate policy are thought. "Even though the economy is not good, the interest rate increases to protect against inflation" or "even though there is a good economy prospect now, it decreases as no one knows what it will be in the future".

In such thoughts, they do not get to co-move. They move differently from cases such as "even though an interest rate in America increases, dollars are sold" or "even thought an interest rate in America decreases, dollars are bought".

Correlation between interest rates and exchange is very complicated. Additionally, the movement between interest rates and exchange are related to stock markets and claimable assets closely. You always need to check at least 4 movements, interest rates, exchange, stock markets, and claimable assets.

Of course, do not forget to check basic economic figures such as economy trend and index of prices.

Have you ever heard such a comment when you put on your TV one day? "The Japan economy keeps its expansion gradually" considering the comment in general way, it means "Japan economy is good!" in fact, it is said that recent Japan economy has kept its expansion since the end of the World War 2.

In this point, let's see an exchange rate. It is the basic style of an exchange that it is bought when its country economy is good, and is sold when its country economy is bas. But, even though how good Japan economy is, it is the truth that a yen rate does not move much. Why is it happened? Because dealers do not take a look at yen much.

Once, the Japan was big economic. But it grew rapidly worse with bubble economy burst. There was a moment recovered by IT bubble. But it grew rapidly worse again after all.

Now, Japan economy is said to be not bad. It means that it is not good as well as before. That is why they do not take a look at yen.

But, it does not mean all economic figures are ignored. There is GDP which is a kid of the figure commanding dealer's attentions. GDP expresses the country growing rate. So it's good or ill makes a great impact on an exchange rate directly.

Except GDP, Nichigin-Tankan makes a great impact on it directly too. Now, it can be said that the co-movement between current Japan economy and exchange rate is really up to these 2 figures.