An Australian company borrowing Japanese yen will benefit in which of the following situations?

Question

Quizplus · Accepted Answer

If the AUD appreciates or the Japanese yen depreciates, the Australian company will benefit from lower repayment costs because they will be able to convert fewer AUD into Japanese yen to pay back the loan. If the situation were reversed and the AUD depreciated or the Japanese yen appreciated, the Australian company would have to convert more AUD to repay the loan, resulting in higher repayment costs.

An Australian Company Borrowing Japanese Yen Will Benefit in Which