AYN 0.00% 0.1¢ alcyone resources ltd

patience, page-32

  1. 1,686 Posts.
    Mahanga,

    The purpose of Japan printing yen is to sell them into the open market and devalue the yen against the US by buying USDs.

    As the increase in demand for US dollars increases the competition for the limited resources and the price of the US dollar strengthens.

    So when you have commodities based in US dollars, as the dollar strengthens it takes less US dollars to buy each unit as the purchasing power is stronger.

    So as the USD increases in strength the USD price of commodities traded on the open market in USD decrease (i.e. silver gold, grains, oil etc)
 
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