Hello!
First off let my start off by giving you the definition of nominal
exchange rate. I’ve found three very basic ones which I think should
suffice:
“The exchange rate quoted at a certain time is the nominal exchange
rate.”
Source: [http://ncb.intnet.mu/cso/report/natacc/product/concept.htm]
“- NOMINAL EXCHANGE RATE: number of domestic
currency units per foreign currency unit”
Source: [http://www.edu.cbs.dk/cm/ibs/Slides/IB%2053/IB53notes1.pdf]
“nominal exchange rate = spot exchange rate
the nominal rates are those quoted in the daily paper”
Source: [www.albany.edu/~jfeeney/econ360/IER11.PDF]
Now, to answer your questions:
1) What have been the trends in the NOMINAL exchange rate (annual
averages) of Japanese currency since 1995, relative to the U.S.
dollar? Relative to the U.S. Dollar, has Japan's currency tended to
appreciate or to depreciate for various times during the period from
1995?
Let’s take a look at the nominal exchange rate statistics of the US
Dollar and Japanese Yen in the period from 1995 to 2001.
Year Japanese Yen Per US Dollar Annual Change
1995 94.11
1996 108.81 15.62%
1997 121.09 11.28%
1998 130.82 8.03%
1999 113.71 -13.07%
2000 107.88 -5.12%
2001 121.52 12.64%
Source: JapanBiomedical.com: Exchange Rate History
[http://www.japanbiomedical.com/currency_history.html]
The first major trend in the exchange rate of the Japanese currency
relative to the US Dollar is quite clear. In 1995, the average
exchange rate was 94.11 per USD. In subsequent years, a depreciation
of the Japanese yen can be observed, reaching a value of 130.82 yen
per USD in 1998. This evidently shows the increasing strength of the
US dollar during that period, which was in large due to high economic
growth in the United States.
The first major slump of the US Dollar can be seen in 1999, and the
trend continues into 2000. The dollar sharply regains its strength
against the yen in 2001, a trend which has been maintained as the
price of the Japanese currency today is 122.18. Overall, the dollar
has gained more than 29% against the yen in the period from 1995 to
2001.
2) What have been the trends in the NOMINAL exchange rate (annual
averages) of Japanese currency since 1995, relative to Germany's
currency? Relative to Germany's currency, has Japan's currency tended
to appreciate or depreciate for various times during the period from
1995?
To see the nominal exchange rate trends, a review of the statistics is
once again necessary. Here’s is some information on the exchange rate
of the German mark and Japanese yen in the period of 1995-2001. It
should be noted that in 1999 the German mark was officially replaced
with the Euro.
Year Japanese Yen Per German Mark Annual Change
1995 65.63
1996 72.28 10.1%
1997 69.77 -3.48%
1998 74.39 6.62%
1999 62.03 -16.6%
2000 50.66 -18.3%
2001 55.58 9.72%
Source: Pacific Exchange Rate Service
[http://pacific.commerce.ubc.ca/xr/USDpages.pdf]
The German mark, unlike the US dollar, can be seen as losing its
value, or depreciating against the Japanese Yen in the period between
1995 and 2001. The years 1995-1998 were ups and downs for the German
mark and there is no distinct trend. The mark remained in the 65-74
range. It can be seen that after the introduction of the euro in 1999,
the value of the German mark (although existing only in theory, as it
was pegged to the euro) drops sharply, only slightly bouncing back in
2001. This year though, the euro has regained some strength and if the
mark were Germany’s official currency today it would be valued at
62.15 Japanese yen. Overall the German mark lost 15.3% in the period
between 1995 and 2001.
Other sources:
FX Converter
[http://www.oanda.com/convert/classic]
Search terms used: exchange rate history, mark vs. yen, dollar vs. yen
I hope this satisfies your inquiry.
pmrozik-ga |
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