The U.S. dollar exchange rate increased from 0.96 Canadian...

The U.S. dollar exchange rate increased from $\$ 0.96$ Canadian in June 2011 to $\$ 1.03$ Canadian in June $2012,$ and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012. What was the value of 100 yen in terms of U.S. dollars in June 2011 and June 2012 ? Did the yen appreciate or depreciate against the U.S. dollar over the year June 2011 to June $2012 ?$

The U.S. dollar exchange rate increased from $\$ 0.96$ Canadian in June 2011 to $\$ 1.03$ Canadian in June $2012,$ and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012.
What was the value of 100 yen in terms of U.S. dollars in June 2011 and June 2012 ? Did the yen appreciate or depreciate against the U.S. dollar over the year June 2011 to June $2012 ?$

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Key Concepts

Appreciation and Depreciation

Appreciation and depreciation describe the changes in value of a currency relative to another over time. When a currency appreciates, its value increases compared to another currency, meaning that more of the other currency is needed to buy the same amount. Conversely, depreciation means the currency's value has decreased relative to another, impacting trade competitiveness and purchasing power.

Exchange Rate

The exchange rate is the value of one currency expressed in terms of another. It serves as a conversion factor between two currencies, enabling the calculation of equivalent values when trading goods, services, or assets across different currency zones. This concept is crucial in global finance and international trade.

Currency Conversion

Currency conversion involves using an exchange rate to translate an amount from one currency into another. This process is essential for evaluating prices, profits, and costs in different currencies, and it helps individuals and businesses make informed financial decisions in a global market.

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