Country X carries on trade with only two nations, the USA and Japan. 90% of its trade is with the USA, while 10% is with Japan. The initial trade-weighted exchange rate index has a value of 100. Country X’s currency appreciates by 10% against the US$. It also appreciates by 50% against the Japanese yen. What will be the value of country X’s new trade-weighted exchange rate index?
- A114
- B115
- C130
- D160