Wednesday, May 2, 2007

Yen's Real Effective Exchange Rate Hits 21-Year Low, Bank of Japan Says

(Bloomberg) -- The yen's real effective exchange rate fell in April to a more than 21-year low of 96.90, the Bank of Japan said, as the lowest interest rate among major economies led investors to sell yen for higher-yielding currencies.

The rate is derived by first calculating the weighted average of the yen's exchange rate against a basket of currencies used by Japan's major trading partners. The result is then adjusted to account for inflation in those countries. The rate is regarded as useful for measuring long-term foreign exchange trends because it is inflation adjusted.


Read more at Bloomberg Currencies News

No comments: