Sources of currency values
These currency values have been obtained from several sources. The first source is Bloomberg. This site offered the values of these currencies for comparison purposes. There was a need for computation and conversion in order to obtain accurate values. Bloomberg offers currency values for international financial markets (Watson, 2013). The other source for these currency values is yahoo finance. This platform provides currency values on a historical trend basis. It provides charts and trends depiction for a clear and illustrative comparison. Yahoo Finance has been a key source for financial values; aiding financial analysts in their analysis (Elliott, 2012). The final source for these values is stack exchange. This site provides currency values and their respective dates for particular values. In addition, stack exchange provides a brief economic relationship between the currency values and their past movements. This platform gives its readers a cause and effect explanation of the currency movements (Miller, 2012).
Trends for these currencies are inconsistent over time. After a continuous increase or decrease over time, there are fluctuations. This contributes to the inconsistency of the trend. A case is that of the Japanese Yen. In the period between January 2008 and January 2009, the value of this currency increased. However, in July 2009, the value decreased since 92.69 Yen were required for a dollar; in comparison to the 88.93 Yen required in January of the same year. From July 2009 to January 2012, there is a continuous currency appreciation of the Yen. The only fluctuation is observed in value on the first of this month when the value depreciates to 102.42 against the dollar. For the Great Britain Pound, its value increases from January to July 2008. A similar trend is observed between January and July 2009. Contrastingly, there is a reversal in July 2010 when the value falls to 0.67 from 0.63 in January. In 2011, the value of this currency increases slightly to 0.63 in July from the value recorded in January.
In comparison to the value of the first month, the value in January 2012 is quite low since it is 0.64. In this financial spreadsheet, the final currency is the Indian Rupee. This currency depreciates continuously from January 2008 to July 2009. During this period, the value depreciates to 49 Rupees from 39.12 Rupees against the US dollar. After an increase in January 2010, the value decreases to 46.89 in July 2010. A continuous decline is observed up to July 2011. One dollar goes for 52.51 Rupees in January 2012 and then devalues at the first of this month.
The similarities in the currencies are observed for the Yen and Great Britain Pound between January and July 2008. These two currencies appreciate in value in this period. The other similarity is observed in the period between July 2010 and July 2011. In this period, all the currencies appreciate against the US Dollar. However, there are several differences observed in the trends of these currencies. The first is that the Yen appreciates between July 2009 and July 2010 while the GBP depreciates in this period. In addition, the Yen appreciates on an overall basis from January 2008 to the value of the first month while the Yen depreciates in the same period.
Effect of trends on trade
These trends have a direct impact on trade between the US and each of these countries. A trend of appreciation in the Yen between January 2008 and January 2009 increases import trade from the US. This is because US imports are relatively cheaper than before the appreciation. The appreciation trend for the Great Britain Pound between July 2010 and July 2011implies that imports from Britain by the US residents decreases (Watson, 2013). This is because the dollar depreciates in this period, hence increasing the value of imports. The depreciation in the Indian Rupee from January 2008 to July 2009 implies that Indian exports are cheap in this period. Exports from this country, therefore, increase.
As far as trade between the countries is concerned, appreciation of the Yen against Great Britain Pound (GBP) reduces imports from Japan by Britain. Depreciation of the Yen against the Indian Rupee increases imports to India from Japan. When the GBP appreciates against the Yen, there is an increase in imports from Japan. If the GBP depreciates against the Indian Rupee, there is a decrease in exports to India (Miller, 2012). For the Rupee, its appreciation against the Yen implies an increase in Japanese imports. If the Rupee depreciates against the GBP, exports from India to Britain increase.
Governments are affected by an increase in imports into their countries since import tariffs increase. On the other hand, exporters enjoy increased sales when their domestic currencies depreciate. For consumers, high prices are charged when their domestic currencies depreciate. If the domestic currency appreciates, consumers enjoy reduced prices.
Elliott, G. (2012). Online Financial Platforms. Financial Institutions and Markets, 42.
Miller, M. (2012). Foreign Currency Values and Trends. International Business and Trade Relations, 59-61.
Watson, A. (2013). Foreign Currency Rates for International Markets. Journal of Finance, 36-37.