What is the proper way to cite the Yen-USD exchange rate of say 115. Would you say 115 JPY/USD or USD/JPY 115??? Or USD-JPY 115??? I always find it easier to view as FC/DC so JPY/USD or JPY ‘Per’ USD. Any thoughts?

I would say 115 JPY/USD

CNBC is always wrong on their currency quotes!!!

WS…how do they quote it?

Completely backward!

It sort of depends on where you are. Direct = DC / FC Indirect = FC / DC Direct makes more sense, because you can look at it like a price. For an American, the only difference between $1.50 / Euro and $1.50 / Budweiser is the item you’re buying. The price can go up or down from there and it’s easy to mentally follow. But if you look at the indirect quotes, it would be 0.67 Euros / USD or 0.67 Budweisers / USD, and if the number in front increases, that means the price is getting cheaper. Of course, I suppose currencies like the Yen might usually be expressed as JPY / USD, considering the silliness of $0.008695652 / JPY compared to 115 JPY / USD. Level 2 Schweser pissed me off with their indirect quotes in some of the currency equations and direct in others. How handy, then, that we didn’t get any currency questions last June.

I know direct vs indirect. Also, Euro and GBP are “always” quoted in indirect terms from a US investor’s standpoint. It was more what is the proper way to quote it, on Bloomberg it will say USD-JPY 114, but to me that reads USD per JPY but instead its $1USD - 114JPY, but I guess I"ll get over it.

The easiest way to think of it is to read “115 JPY/USD” as “115 Japanese Yen PER US Dollar”. The other thing you can do is look at the denominator and think, “that’s the currency that’s being purchased for whatever number you see,” then look at the numerator currency to remember what it is being purchased with. I just always remember look at the denominator symbol first, and that helps. I agree that it’s confusing until you get used to it.

I prefer JPY/USD that’s not the confusing part, its when on Bloomberg you have to reverse you thinking. For Bloomberg JPY/USD = USDJPY and USD/JPY = JPYUSD.

The readings use DC/FC & that’s what I am sticking with for solving the problems. As long as you are consistent in your notations, you are fine.