So all this mess in Japan casued yen to rise. Why is it going up? They did after all printed alot after the earthquake/tsunami.
Maybe a lot of people are taking their money out of shares and bank accounts in Japan, causing a demand for the yen.
They're taking money from overseas investments and buying Yen to rebuild etc which has spooked the USA since the owe Japan about a trillion dollars or so. It's also why the Oz dollar dropped as it did. But not to worry, the G7 got together and made sure that the flight to Yen was 'orderly'.
in a word repatriation I can tell you that the Zaibatsu want the yen at about 105 to the USD then again there is going to be a massive re-investment program and QE like there is no tomorrow after the quake/tsunami I was sure the yen would tank and it spiked... I reckon it will take about a year, perhaps more before Tokyo returns to "normalcy" in short, I have no idea
I think the g7 is holding the line fairly well in not letting it appreciate. makes it hard to make a call when you have those forces at play.