4. Euros and Yen. The Japanese yen-euro cross-rate is one of the more significant currency values for global trade and commerce. The following graph shows this cross-rate back-calculated from early 1994 through the end-of-year 2007. (Remember the euro was not launched until January 1999, but its value can be back-calculated from its component currencies.) Estimate the change in the value of the yen over the following three periods of change:

a. Jan 1994-Aug 1998

b. Sep 1998-Oct 2000

c. Nov 2000-Dec 2007

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170 160 150 140 Monthly Average Exchange Rates: Japanese Yen per European Euro 130 M 120 11 110 100 90 94 96 98 00 02 04 06 Source: Pacific Exchange Rate Service 2007 by Prof. Werner Antweiler, University of British Columbia, Vancouver, BC, Canada.