 As explained above, the return, or rate or return, depends on the currency of measurement.In the example given above, a US dollar cash deposit which returns 2% over a year, measured in US dollars, returns 12.2% measured in Japanese yen, over the same period, if the US dollar increases in value by 10% against the Japanese yen over the same period.The return in Japanese yen is the result of compounding the 2% US dollar return on the cash deposit with the 10% return on US dollars against Japanese yen