Final answer:
A depreciation of the U.S. dollar relative to the Japanese yen could be caused by a recession in the U.S., leading to a decrease in demand for the dollar and an increase in its supply on foreign currency markets. External factors such as lessening foreign investment attraction and speculative selling of the dollar can further contribute to its depreciation. The correct answer is a recession in the u.s.
Step-by-step explanation:
Factors that might cause a depreciation of the U.S. dollar relative to the Japanese yen include scenarios leading to a decrease in demand for the dollar or an increase in its supply. If there is a recession in the U.S., U.S. assets become less desirable, and lower interest rates may further reduce their appeal, causing a decrease in dollar demand and an increase in supply on the foreign currency markets. Consequently, we can expect to see the dollar depreciate against the yen.
Additionally, if foreign investors become less willing to hold U.S. assets, and speculators rush to unload their dollar holdings, this could further exacerbate the dollar's depreciation.
In contrast, an event like more Japanese visitors to Hawaii or a greater demand for U.S. coal by Japan would likely lead to an increase in the dollar's value relative to the yen, as these situations would increase the demand for dollars.