June 28 (Wednesday): Nikkei 225 vs USD/JPY (Course: History of the USD/JPY)
Good morning☀
This time it's not about trading knowledge, but a history story.
The market has not always been like todayin the flexible exchange-rate systemDid you know that it wasn’t?
From 1949 to 1971, Japan adopted a fixed exchange-rate system based on the Bretton Woods system.Fixed exchange-rate systemDuring this period, the dollar held a primary position as the world’s main currency, and exchange rates with other currencies were fixed.
Specifically,
the value of the yen was fixed at 360 yen per 1 dollarand this rate was maintained for a long time.
Thisfixed exchange-rate systemwas based on the United States’ gold convertibility.
However, in 1971 the United States stopped redeeming dollars for gold, and the Bretton Woods system collapsed,the fixed exchange-rate systemcame to an end.
Afterwards, countries shifted to thefloating exchange-rate systemin which exchange rates freely fluctuate based on market supply and demand and economic factors.
It was said that the yen was 360° as 360 yen only (◔‿◔)
(though there are various theories… lol)
(*The following content is for members only.)