Trade-weighted value of Japanese Yen
The trade-weighted value of Japanese Yen is the weighted average index calculated in proportion as the amount of the actual trades. We often listen to the words, Yen appreciation or weaker Yen on TV news but the Yen value against US dollar is different from that of Euro, and so, the trade-weighted value of Japanese Yen is useful as a general index. The trade-weighted value of each forex currency is published by IMF international financial report and the central banks like BOJ, FRB, BOE and ECB make the trade-weighted values respectively.
There are two types of the trade-weighted value. One is the nominal trade-weighted value and the other is real based.
Nominal trade-weighted value
The nominal trade-weighted value is the weighted average index calculated in proportion as the amount of the actual trades and made index in comparison to a certain benchmark.
Real trade-weighted value
The competitiveness against foreign countries changes due to inflation. The real trade-weighted value is the weighted average index including inflation factor in it in addition to the nominal trade-weighted value.