Sure, the Yen is overly weak on a trade-weighted basis BUT it is the least weak versus the USD!
E.g., For any intervention to be effective it ought target just about any other high yielding spread/pair EXCEPT for the USD!
Having established that, it is still far more likely that any intervention would target the USD/JPY directly than the rest, if for no other...
The trade-weighted dollar index was introduced in 1998 for two primary reasons. The first was the introduction of the euro, which eliminated several of the currencies in the standard dollar index; the second was to keep pace with new developments in US trade.
In the standard US dollar index, a significant weight is given to the euro. To more accurately reflect...
www.rbnz.govt.nz
Just want the TV community to be aware of this fundamental change to the Kiwi across the board.
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15 December 2015
Updated weights for Trade-Weighted Index
The annual re-weighting of the Trade-Weighted Index (TWI) will take effect on Wednesday 16 December 2015.
The TWI is a measure of the value of the...
