Other things equal, to keep the yen's exchange value from appreciating against the dollar Japan's exchange stabilization fund would buy yen for dollars on the foreign exchange market.

Question

Quizplus · Accepted Answer

To keep the yen's exchange value from appreciating against the dollar, Japan's exchange stabilization fund would sell yen for dollars on the foreign exchange market, increasing the supply of yen and decreasing its value relative to the dollar.

Other Things Equal, to Keep the Yen's Exchange Value from Appreciating