Why is the yen exchange rate the highest in August and September every year?

In the financial market, the fluctuation of exchange rate is influenced by many factors, including economic fundamentals, political factors and market sentiment. The following are some explanations why the yen exchange rate is higher in August and September every year:

1. Increased demand for tourism: August and September are usually the peak periods of summer vacations and holidays around the world, and many people choose to travel at this time. Japan is a popular tourist destination, so the rising demand leads people to buy more yen, thus pushing up the yen exchange rate.

2. Capital flow: At this time, some institutions or investors make capital flow adjustments, such as portfolio reconfiguration or capital return. These capital flows will affect the demand and supply of the yen, thus affecting the exchange rate.

3. Economic data and market sentiment: August and September are important moments in a year, and many countries will release important economic data, such as GDP and employment data. The publication of these data will trigger the fluctuation of market sentiment, thus affecting the yen exchange rate.