On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the

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On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange market. On September 13, 2010, the U.S. dollar was trading at 83 yen per U.S. dollar.
a. What events in the foreign exchange market might have brought this fall in the value of the U.S. dollar?
b. Did the events change the demand for U.S. dollars, the supply of U.S. dollars, or both demand and supply on the foreign exchange market?
Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...
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