Expert: Paul Henneman - 12/15/2003

Question
Hello:

I have two questions regarding the foreign exchange market.

1. If the dollar is trading at 1.1813 against the yen, does this situation indicate that one dollar can exchange for 1.1813 yen?

2. The yen rose against the U.S. dollar in today's trading.
Is this situation good or bad for the U.S. dollar?

I thank you for your helpful reply.

Answer
Thank you for your question! Unfortunately I will have to pass on this question as my expertise rests in equities (publicly traded companies) and not with foreign exchange markets. My basic knowledge tells me that yes to your first question. Your second question is much more complex. Certain aspects are good for US economy, others bad if the Yen rose against the US dollar, my knowledge is not good enough to flesh this out for you. My apologies.

Sincerely,
Paul Henneman
President
ValuEngine, Inc.
www.ValuEngine.com