Dave's ESL Cafe's Student Discussion Forums

[BMO]

> The value of the yen has declined sharply, lower than it has been since July of last year. Yesterday on the European markets it reached a level below 100 yen, later, in New York it fell to 110 yen.

Question:

1. Lower than it has been since last July means it just hits the lowest point since Last July. (What is it has been? From last July until yesterday or right before this new low?)

2. The Europen markets exchange rate is 1 euro to less than 100 yens.

3. In New York markets, one US dollar is traded for 110 yens.

4. When the exchange rate is one US dollar to 90 yens, is this a new, new low for the yen? I thought this is an increase in yen's value since it now only takes 90 yens to buy one US dollar. I am confused.

Thanks.

bmo

[bud]

1. From last July up through the closing of the day berfore yesterday.

2. That's what I would think.

3. That's what I would think.

4. Same here, BMO. I don't get it.

[Vin21]

I think this news is not true or it is not the current news.Maybe it's only an example making up for you to learn something from.
I think 100 yen and 110 yen are exchange rates to US dollar.
But the yen plunged from 100 to 110 for 1 dollar within one day was a little exaggerated.

[BMO]

No vin21, 100 and 110 are 2 different currencies.

[Vin21]

What I think is that,may be wrong,we're talking about the value of the yen declining sharply,so it's value is becoming less and less.That means: 1 dollar to 100 --->101---->102---->105---->110--->120...and so on.
"it reached a level below 100 yen" ,that means you can buy more than 100 yen with 1 dollar,and later in New York,you can buy 110 yen with one dollar.

[Vin21]

Oh,yes."Europen markets" means the Exchange markets in Europe,and than the US market and other places,because of the time difference.I don't know the exact details.

[BMO]

Vin21, I think you are right, thanks. When it says below 100 yen, that is 100 or more yen, and that is a decrease in the value of yen.

bmo

[bud]

I still don't get it, but finance and economics send me into a trance anyway!

[BMO]

Bud, I think I got it. When the exchange rate goes from $1 against 100 yens to $1 against $200 yens that is a decrese in the value of yen. An imported radio used to cost $1 US (or 100 yens), now costs only 50 cents (or 100 yens). Japanese yen is devalued. This makes Japanese goods easier to sell in the U.S., and conversely, harder the other way around.

b

[bud]

Ok, thank you, BMO. You too, Vin.

[BMO]

You are elcome.

bmo