An increase in the value of the dollar relative to the yen has a positive effect on the returns of Australian investors who invest in shares of Japanese firms.

Question

Quizplus · Accepted Answer

An increase in the value of the dollar relative to the yen means that the yen is weaker. For Australian investors, this would reduce the value of their investments in Japanese firms when converted back to their local currency, assuming the investment is made in yen.

An Increase in the Value of the Dollar Relative to the Yen