Why does the spot exchange rate change based on the current account/trade balance of a country?

Answers:0   |   LastUpdateAt:2012-09-23 02:44:01  

Question
tiffany mccormick
Asked at 2012-09-23 02:44:01
The question I asked to forecast the spot rate one year in the future if Japan has a current account surplus and the U.S. has a current account deficit . So I would say that the yen should appreciate in value based on this, but I do not quite understand why it would happen.
Answers

This Question:"Why does the spot exchange rate change based on the current account/trade balance of a country?" No answers yet. Be the first!
Related Questions
1
  • Answer This Question:Why does the spot exchange rate change based on the current account/trade balance of a country?