Trade-Weighted Exchange Rate

Trade-Weighted Exchange Rate

The exchange rate for a currency as adjusted against a currency basket consisting of the currencies of a country's main trading partners. This allows a currency to be judged against the currencies that it is most likely to be converted into, rather than against the market as a whole.
References in periodicals archive ?
The trade-weighted exchange rate has increased by around 3 percent since May, partly in response to higher export prices.
In both cases, a negative local shock (housing bust in Mian and Sufi 2012, a rising trade-weighted exchange rate for local manufacturing industries in our study) is assumed to reduce employment in local nontradable industries through a demand channel.
At the same time, the dinar's trade-weighted exchange rate rose by around 4 percent.
Will it shift to target the RMB's trade-weighted exchange rate, or will it continue to target the RMB-U.
With this weak manufacturing print, the high likelihood of a technical recession, and falling core inflation, we think the conditions are right for the central bank to ease the pace of appreciation of its trade-weighted exchange rate band," Credit Suisse economist Michael Wan said in a note to client.
Many studies that presume an export role for FDI concentrate on trade-weighted exchange rate measures.
This rebalancing of growth will be driven by the 8 per cent decline in this year's expected trade-weighted exchange rate compared with 2007.
In the second article, Hannah Kite of the Economic Department reports on a review of the trade-weighted exchange rate index (TWI) that the Reserve Bank has undertaken over the past year.
Under the global payments approach, China is a prime candidate for significant real currency appreciation: it has experienced massive reserve accumulation equal to 10 percent of GDP over each of the past three years; its real, trade-weighted exchange rate has depreciated over this period; and it has now recorded 10 successive quarters of 9 percent plus economic growth.
dollar, as measured by a trade-weighted exchange rate index, has an inverse relationship to the falling forest product balance of trade since the mid-1980s.
Accordingly, the trade-weighted exchange rate series appropriate for a producer or an industry depends on the industry and the issue under consideration.
However, there was an unexpected downturn in export activity, reflecting an increase in the trade-weighted exchange rate.