On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange

market. On September 13, 2010, the U.S. dollar was trading at 83 yen per U.S. dollar. (5)

a. What events in the foreign exchange market might have brought this fall in the value of the U.S. dollar?

b. Did the events change the demand for U.S. dollars, the supply of U.S. dollars, or both demand and

supply in the foreign exchange market?