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Why has the MYR appreciated against the JPY?  

Project Log 02

Before I research anything specific, I noticed I must understand the basic concept of the causes of
the appreciation of a currency, therefore, I will look through the A-Level Economics textbook and
summaries the causes.

The source: Cambridge University Press Economics for Cambridge International AS & A Level
COURSEBOOK Colin Bamford & Susan Grant
The sourse: AQA A-level For A-level Years 1 and 2 Economics Fifth Edition Ray Powell James
Powell David Horner Steve Stoddard

1. Exchange rate – the price of one currency measured in terms of other currencies.
2. Causes of increase in exchange rate

• Increase in demand for exports by improved quality or successful advertising.
• Increase in the demand for imports due to an increase in the competitiveness of foreign firms, will raise the value of foreign currency (increase in exchange rate) to make it easier to purchase foreign goods and services.
• Higher interest rates offer better returns on investments, increasing demand for the currency and appreciating its value, ceteris paribus (meaning-if the other quantities stay the same.)
• A decrease in the price of goods and services caused by domestic deflation will tend to increase the demand for exports.
• Foreign direct investment (FDI), for example, Nissan cae manufacturing plant in India required Japanese car maker to buy Indian rupees to pay for materials, recruitment of labor and other production costs. Thus, inward FDI will boost the demand for a currency.

I learned that exchange rates are influenced by multiple factors, both domestic and foreign.

Using these factors, I am going to look for the articles or news where I pointed out in
the earlier record that are related to these factors.

Why has the MYR appreciated against the JPY?  

Project Log 00

The period I am going to research is from January 2021 to January 2026. 

The reason for it is because it is the post-pandemic recovery period. The period when COVID-19 pandemic ends and the economy start to act normally. 

The sites thet I am going to use are 

• Investing.com for charts 

• IMF (International Monetary Fund): A highly reputable institution that analyses the global economic situation. 

• Bank Negara Malaysia: The central bank of Malaysia. 

Why has the MYR appreciated against the JPY?  

Project Log 01

1. At first, I decided to start by analyzing basic data. 

• I decided to research if there is any specific year the Malaysia ringgit appreciated against the Japanese Yen. 

• I decided to research the chart of the last five years of MYR/JPY rate, January 2021 to January 2026. 

↳　I used the site called investing.com because it is the one of the largest investment portal sites, therefore, reliable. 

2. Charts 

Source: Investing.com

3. What the graph indicates 

• Overall, the appreciation is graduate, and it seems there are particularly no standout changes. 

• Some noteworthy changes 
  • In March 2022, appreciated from 27.4 MYR/JPY to 28.9 MYR/JPY  
  • During period of March to August in 2022, MYR/JPY increased from 27.4 to 31.0.
  • The fluctuations (the ups and downs) in the graph from April 2024 to February 2025 have become more pronounced, ranging between 32.0 and 35.0 MYR/JPY. 
  • Significant increase rate from October 2025 and it continues until now. 

4. Analysis 

• I am not be able to know the cause of increase/decrease by only seeing the charts, but I could know the appreciation is continuous, therefore, the general (one of the) cause if appreciation is also something that affects economic continuously.
• In addition, I could know a few times that the chats moved notably so there may be some events during these periods of time. 
  

5. What will I do next week 

• Research the general cause of appreciation. 

• Research any special events that happened when the time/period I pointed out. 

I am Sakura Toyooka, A Level student. This is my website for EPQ.