The Sept. 11 terrorist attacks on the United States reminded the world that a new type of risk can hit the global economy in the new century. Risk factors multiplied beyond economic fundamentals, adding greater volatility to markets.
Since October, the yen has depreciated against other major currencies, falling not only against the dollar but the euro as well.
While foreign exchange rates reflect economic conditions and the comparative risks of the countries involved, the dollar-euro rates have remained relatively stable. What is happening in the currency market is the fall of the yen.