Trade Weighted Index (1 Viewer)

[Rafy]

http://community.boredofstudies.org/showthread.php?t=79905

 

[sk8ie_boi]

Briefly explain why an exchange rate can move in the opposite direction to the Trade Weighted Index.

 

[motlai]

an exchange rate is the value of one currency in terms of another currency, while the TWI measures the value against a basket (or technically, a regimen) of other currencies based on the strength of our trade and financial links

thus, while, for instance, the $AUD may depreciate against the $USD, it can still appreciate against the TWI if the $AUD appreciates against the currencies of our other trading partners such as New Zealand and Japan

 

[tWiStEdD]

good answer.
concise. my eco teacher would have proposed to you on the spot.